Housing budget tops €9bn as committee scrutinises Uisce Éireann and homelessness funding
Minister defends market reset approach and shifts in social housing acquisitions at Oireachtas committee
28 February 2026 | editor@breakingground.news
The Select Committee on Housing, Local Government and Heritage has examined Revised Estimates for 2026 totalling more than €9 billion for the Department of Housing, Local Government and Heritage, alongside €2.25 billion for Uisce Éireann.
Opening the session on 24 February, Minister for Housing James Browne set out a gross Estimate of just over €9 billion under Vote 34 for 2026, comprising €3.1 billion in current expenditure and €5.9 billion in capital. A further €127 million from Local Property Tax receipts brings total managed funding under the Vote to approximately €9.1 billion.
Separate allocations under the Department’s aegis include €2.25 billion for Uisce Éireann, €103 million for Tailte Éireann and €12.15 million for An Coimisiún Toghcháin.
Housing supply and capital delivery
The Minister reaffirmed the Government’s target of 300,000 new homes by 2030 under Delivering Homes, Building Communities, including 72,000 social homes and 90,000 affordable housing supports.
For 2026, over 29,000 households are expected to have their housing needs met. This includes 10,200 new-build social homes in 2026, with an average target of 12,000 new-build social homes per annum over the lifetime of the plan. More than 27,000 approved social housing units are in the pipeline for delivery between 2026 and 2028, with almost 13,000 at proposal stage.
Over €9 billion in capital funding for housing in 2026 will be provided through Exchequer resources, the Land Development Agency and Housing Finance Agency lending.
An allocation of €563.5 million has been provided to address homelessness, including €513.5 million in current funding for emergency accommodation and tenancy sustainment supports, and €50 million in capital for local authority and NGO-owned emergency and transitional accommodation.
Market reset and HAP review
Significant debate focused on the impact of the forthcoming “market reset” in private rents, due to commence on 1 March, and its potential effect on Housing Assistance Payment (HAP) expenditure and homelessness.
Minister Browne confirmed that a review of HAP limits is under way and that any changes would be considered in the context of Budget 2027. He stated that there was “no evidence from the market yet” under the new legislation and that decisions would be informed by emerging data in the coming months.
Officials confirmed that up to the end of quarter three of 2025, 5,153 new HAP tenancies had been created.
The Minister also confirmed that social housing income limits, last increased in 2023 by approximately €5,000 across bands, are under review and would be adjusted.
Social housing acquisitions and tenant in situ
Under social housing acquisitions, €373 million has been made available for 2026. This includes €50 million carried over from a September 2025 allocation aimed at supporting exits from homelessness.
Within the overall allocation, €173 million has been identified for tenant in situ acquisitions. The Minister acknowledged a reduction in acquisitions in 2025 compared with 2024 but said capital prioritisation had shifted towards new-build social housing.
He stated that approximately 1,000 acquisitions are expected in 2026, with lower refurbishment costs anticipated compared with 2025.
Housing infrastructure and LIHAF successor
A total of €205 million has been allocated to housing infrastructure in 2026, supporting the Housing Activation Office and the new Housing Infrastructure Investment Fund. The multi-annual €1 billion fund, launched in January, is intended to unlock serviced land at scale.
Minister Browne said the new fund differs from the former Local Infrastructure Housing Activation Fund (LIHAF) by prioritising shovel-ready projects capable of commencing in 2026 or 2027, with reduced conditionality and a focus on speed of delivery.
Water services and Uisce Éireann
The €2.25 billion allocation to Uisce Éireann includes €1.4 billion in capital funding. Within the Department’s own Vote, €197 million is allocated to water services, including €72 million for water quality and over €72 million for the rural water programme.
Responding to questions on wastewater capacity constraints, the Minister confirmed that funding between wastewater and drinking water infrastructure is broadly even, with slightly higher investment in water treatment.
He acknowledged delays in discharge licences and said he is engaging with the Environmental Protection Agency and other bodies to examine parallel processing of consents to accelerate delivery.
Planning reform and staffing
Almost €410 million has been allocated to planning in 2026, including €300 million for the Urban Regeneration and Development Fund and €14 million to enhance local authority planning capacity.
As of 31 January, An Coimisiún Pleanála had 295 staff in post, with sanction for 316. The number of cases on hand has reduced from over 3,600 in May 2023 to below 1,300. All large-scale residential development appeals have been determined within the statutory 16-week timeframe.
Additional graduate planner posts and staff officer roles have been sanctioned, alongside an apprenticeship pathway in planning.
Affordable housing and cost rental
Under the affordable housing subhead, €150 million has been allocated for affordable measures, including local authority schemes and cost rental. The Minister acknowledged uneven uptake among local authorities and said he is encouraging greater engagement.
In relation to cost rental, he confirmed flexibility is afforded to the Land Development Agency on rent-setting within overall policy parameters, while noting strong demand for available units.
Heritage and shared island
Over €263 million has been allocated for heritage measures, including €107 million for the National Parks and Wildlife Service, €48 million for Waterways Ireland and €28 million for built and archaeological heritage grants. More than €52 million is provided for the Narrow Water Bridge project from the Shared Island Fund.
The Revised Estimates were approved following the session.
