15 September 2025
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Social Housing Funding Models in Ireland

To The Point
(6 min read)

With the demand for Social Housing continuing to increase, an overreliance on funding from the Housing Finance Agency (HFA) has the potential to exacerbate delays in supply of housing. In this article our Construction and Debt Capital Markets teams have delved into the existing capital funding schemes, how AHBs currently fund the balance of their acquisitions / developments, and crucially looks at alternative funding models that should be given due consideration in Ireland, if we are to meet the housing targets set by Government

Introduction

Approved Housing Bodies (AHBs) have, in recent years, moved from peripheral players in the delivery of housing for the Irish population, to now being the dominant players in acquiring apartments, duplexes and low-rise residential units from developers. As of October 2024, the top six most active AHBs control more than €7bn in property. The AHBs are now the largest investor in high density residential construction, replacing the Private Rental Sector (PRS), which in 2021 showed an annual investment of €1.8bn, dropping to €166m in 2024. 

The AHBs and the Land Development Agency (LDA) are now being viewed as the key drivers for ensuring Ireland reaches its target of delivering 300,000 new homes by 2030, which includes a commitment to deliver an annual 12,000 new build social homes. They will do so by unlocking state lands, acquiring shovel ready projects via forward fund arrangements from developers, and acquiring completed developments. This will in turn lead to an increase in the availability of cost rental, social and affordable housing.  

Following the publication of the National Development Plan (NDP) Review in July 2025, the Irish Government (the Government) reaffirmed its stance that delivery of housing remains a central objective of the NDP. This is being supported by a Government allocation of €35.96bn to the Department of Housing, Local Government and Heritage (DHLG).

To meet the 300,000 new homes target, funding from central Government will be critical, but will also need to be supported by other funding models. The purpose of this article is to:

1. look at the current capital funding schemes in place to support Local Authorities (LA) and AHBs in the delivery of social housing; and 

2. look at other potential avenues which AHBs should be encouraged to explore to allow for delivery of social housing. 

Relying solely on state capital funding schemes and financing from the HFA to meet the 300,000 new homes target by 2030 is unrealistic. 

The recent decision to pause the Social Housing PPP Bundles 4-7, comprising approximately 2,850 social homes, was due to what James Browne, Minister for Housing, Local Government and Heritage described as a need to review the most appropriate procurement and delivery strategy for these social homes, following the costs incurred in delivering the social homes under Bundle 3. This is despite Bundles 1-3 successfully delivering over 1,400 social homes.

With market credibility on PPP Social Housing Bundles having been so publicly undermined, it will undoubtedly put more pressure on AHBs and the LDA in respect of delivery of cost rental, social and affordable housing. 

Current Social Housing Capital Funding Models
Private Sector Funding
What are the alternatives?
Conclusion

Next Steps

For more information or to discuss how we can support your business, please get in touch with one of the key contacts.

 

To the Point 


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