Over €1.2bn will be set aside for social housing schemes in Ireland, the housing minister has revealed.

Michael Finneran, speaking during the launch of the 2009 National Housing Conference in Sligo, reiterated the dramatic changes in the market since the last meeting two years ago.

"The Irish housing market, like housing markets in all parts of the world, has experienced a sharp contraction over the last 18 months to two years," said the minister.

"This has been reflected in lowering levels of construction activity, easing house prices and decreasing volume of mortgage lending."

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He said over €1bn will now be made available to provide new accommodation, including nearly €250m for the voluntary and co-operative sector, and €35m for funding of traveller accommodation.

Almost €200m will be invested in improving the stock of social housing, and to help sustain local communities, the minister said.

Around half of this will be used to fund major regeneration projects, such as those in Ballymun and Limerick.

Mr Finneran said that "in the current difficult financial climate the funding being provided in 2009 represents an important commitment by Government to the social housing programmes".

"Over €110m this year, to provide for the ongoing costs of providing accommodation under the Rental Accommodation Scheme and under the new leasing arrangements," he said.

The long term leasing initiative is the process of restoring balance to the housing market by matching up social housing need with available unsold housing units.

"We need a broader approach to the provision of social housing than simply relying on the traditional acquisition and construction programmes," said the minister.

(PR/JM)