Home Building Finance Ireland (HFBI) is to publish a new bill which outlines a €750 million investment in residential development.

The 2018 Bill, which received cabinet approval on Tuesday, 12 June, will ensure HFBI obtain increased funding from the Ireland Strategic Investment Fund (ISIF).

The funding will help developers who may be experiencing difficulty obtaining adequate funding for commercially viable residential projects.

Minister for Finance, and Public Expenditure and Reform, Paschal Donohoe said: "I welcome the publication of the Home Building Finance Ireland Bill as a measure to increase financing for much needed residential developments. Not only will HBFI contribute to addressing the current shortfall in the supply of new housing, but it has the potential to benefit small to medium-sized developers with viable sites in locations that are currently not receiving adequate investment.


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"It is envisaged that HBFI will commence lending activity by the end of 2018, with the capacity to have a significant impact on residential market property development across the coming years."

Housing Minister Eoghan Murphy added: "HBFI will play an important part of the Government's overall strategy to increase the supply of new housing within the State. Together with the action plan laid out in Rebuilding Ireland, I am confident that HBFI will help provide a further impetus for the continued increase in home building across the country."

The Bill will now commence through the Houses of the Oireachtas.

(CM)