The Irish Council for Social Housing (ICSH) has welcomed Government action on tackling the housing crisis but warns that the non-profit housing sector is being underutilised.

"What the Government and Minister Jan O’Sullivan are proposing is very welcome at this time but we must not believe that this is the total solution to what is a worsening situation regarding social housing and homelessness," stated Mr Donal McManus, Executive Director, ICSH.

He also made the point that it was crucial that the measures outlined in the Cabinet Implementation Plan were adequately resourced adding: "This will be fundamental to its success."

Mr McManus welcomed the spread of projects approved across the country under the announcement by Housing Minister, Jan O'Sullivan TD. Over 33 non-profit housing associations will deliver over 400 units of accommodation across the country for persons who are homeless, older people and people with disabilities.

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He added that non-profit housing associations have demonstrated their potential to deliver homes to those most in need in a short space of time and are willing and able to play their part.

Mr McManus pointed out that the number of proposals submitted to the scheme greatly exceeded the funding available and there were many worthy projects for special needs groups that were not funded.

"The capacity of this sector is being under-utilised at a time of acute demand for housing. Collectively the output from the non-profit housing sector reached a peak in 2009 with over 2,000 new homes completed and the response to the call for projects illustrate that we are a sector willing to deliver in short time scales," he stated.

Mr McManus said that there had been a dramatic change in how social housing need is responded to, with massively reduced capital State investment. In many cases new responses have relied on private sector initiatives and interest from developers, landlords and financial institutions.

Commenting on the challenges in the private rented sector which although it has increased in size is very competitive, he said it was low-income households who are losing out, especially in Dublin, where significant rent increases are now the norm, leaving many people with very little choice and increasingly without a home.

(CD/MH)