Around 2,000 more privately owned homes could fall under the government's long-term leasing scheme, despite criticism that the solution only benefits landlords.

Housing Minister Michael Finneran said plans were afoot to secure some 2,000 units of accommodation under the terms of this arrangement in 2009.

The long-term leasing scheme places those with housing needs in private properties, rather than supplying more social housing.

Last week, Fine Gael TD Terence Flanagan blasted the process, calling for "new imaginative and innovation solutions" when dealing with the social housing deficit across Ireland.

Publishing the 2008 Housing Bulletin this week, Minister Finneran said his department's various housing programmes had provided homes for over 20,200 households, an increase of 10% on 2007.

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"These included 15,467 households assisted through local authority or voluntary and co-operative houses, 4,567 affordable houses delivered and a further 189 households who received mortgage allowance towards the purchase of their own homes," he revealed.

The Minister said in light of "limited resources," he has been progressing a "considerable restructuring" of the Social Housing Investment Programme by giving priority to a range of "creative and flexible measures".

"The most significant part of that restructuring is the use of long term lease arrangements for the provision of social housing.

"My department, in co-operation with the local authorities and the voluntary and co-operative housing sector, is actively working to secure some 2,000 units of accommodation under these arrangements this year," said Mr Finneran.

"This will ensure that we can meet significantly more housing needs than would be possible if we relied on traditional construction and acquisition programmes alone."

Criticising the government's grasp national housing needs, Mr Flanagan said Fine Gael would increase the cap for the Local Authority Mortgage Scheme to €250,000.

Fine Gael would also slash VAT by 3.5%, bringing the average house price down by €10,000, he said.

(PR/BMcC)