Tánaiste and Minister for Housing announce extension to ISIF’s homes funding programme with additional €600 million investment
- Foilsithe:
- An t-eolas is déanaí:
- €400million allocation for equity-based housing investments to support the delivery of new homes
- Further €200 million in equity to be deployed by the National Banking Sector
- Investment has the potential to deliver up to 5,000 new homes
The Tánaiste and Minister for Finance, Simon Harris TD, and the Minister for Housing James Browne TD, have today announced a significant extension to the Ireland Strategic Investment Fund (ISIF) funding programme to deliver new homes, with an additional €400m equity programme.
This will double ISIF’s equity for homebuilding investment programme to €800m since it was announced in July 2023, with the original €400m close to completion.
To increase the impact of this new programme, ISIF will work with the national banking sector as it makes available €200m in additional equity finance above the €400m from ISIF. This collaboration will seek to scale existing products and develop additional solutions which will also provide much needed equity capital to SME developers to enable the delivery of increased housing across all tenure and dwelling types. The programme will benefit from the momentum generated through the initial programme, along with improved viability resultant from various recent Government interventions.
ISIF makes available significant equity and debt investments to support high-impact residential development, including for SME homebuilders, urban regeneration, real estate and infrastructure projects.
The new allocation will build on ISIF’s existing housing related commitments of €2.5 billion which has supported the delivery of over 19,000 new homes by end 2024 and is targeting the delivery of over 25,000 new homes by 2030. ISIF is currently on track to achieve this target ahead of 2030.
In addition to the equity funding, this collaboration will also provide a mentorship programme to SME developers in cooperation with the banks, Enterprise Ireland, the Department of Enterprise, Tourism and Employment and their representative bodies.
The Tánaiste and Minister for Finance, Simon Harris TD, said:
“I welcome ISIF’s additional €400m allocation which builds upon its previous equity programme of €400m announced in July 2023. The new allocation will build on ISIF’s existing housing related commitments of €2.5 billion, targeting the delivery of over 25,000 new homes by 2030.
“I also welcome the national banks who today are committing to make available €200m in additional equity above the €400m from ISIF. This demonstrates the impact of using targeted State investment to crowd in private capital and expand the pool of funding available.
“Together, this €600 million of equity capital will unlock up to €2 billion of finance for housing developments across the country, with the potential to deliver up to 5,000 homes. The commitment from the banks will increase the impact of ISIF investments and will also support a more sustainable long-term financing ecosystem for the Irish homebuilding sector.”
The Minister for Housing, James Browne TD, said:
“Our new housing action plan, ‘Delivering Homes, Building Communities’ aims to enable the delivery of over 300,000 homes by 2030. To do so, the state will do more but it also needs to empower others – particularly the private sector – to further play a critical part in delivery. ISIF’s additional €400m in its housing equity investment programme – coupled with an additional €200m from the banks - will not only deepen the pool of funding available for Irish homebuilding but will enable many more small and medium house-builders to get involved. With this significant injection of funding, it will improve SME homebuilder’s ability to establish a consistent pipeline of projects and greatly assist in scaling up their housing output on a sustainable basis nationwide.
“As Minister for Housing, I am determined to not only deliver more homes but also to create the best possible operational environment for homebuilding. Investment like this is crucial as we engage with all our delivery partners and stakeholders, both public and private, in further mobilising critical residential investment and development in Ireland now and into the future”
The Senior Investment Director, Real Assets ISIF, Sarah Hickey said:
"The availability of equity risk capital is important in supporting housing delivery. ISIF has previously committed €400m to equity risk capital for housebuilders, unlocking sites, improving commercial viability and funding the delivery of thousands of new homes.
This new €400m commitment will build on that progress, supporting new funding platforms, helping more housebuilders and delivering more homes for the people who need them. ISIF’s capital will also continue to act as a catalyst for co-investment by other capital providers, making additional capital available for the sector to enable growth.
We look forward to working alongside partners, stakeholders, and the Irish banking sector to continue supporting the delivery of housing throughout Ireland."
The Chief Executive of Banking & Payments Federation Ireland (BPFI), Brian Hayes said:
“The banking sector is committed to playing its part in addressing Ireland’s housing challenge and is already a key contributor to housing delivery through the provision of debt and equity financing. Today’s announcement, which will see AIB and Bank of Ireland commit to investing further equity funding in housebuilding, while working closely with ISIF, will unlock additional finance for homebuilders. This will help accelerate delivery of viable projects and ensure that equity and debt solutions work together to accelerate housing delivery.
We look forward to working closely with Government and ISIF on the rollout of the programme in 2026.”
ENDS
The Tánaiste and the Minister for Housing will this week announce a €600 million injection into the Housing Market – with the aim of delivering thousands of homes for families across the State.
Simon Harris, in his role as Minister for Finance, will bring a memo to Cabinet that will see an extension to the Ireland Strategic Investment Fund (ISIF) funding programme, with €400 million being set aside in equity, with the country’s key banks expected to provide a further €200 million.
The €600 package will mean that the ISIF – the State’s body that invests in Housing and other key areas such as Climate and Transport – is poised to be in a position to deliver up to 5,000 homes of all tenure across the country.
In the memo, the Tánaiste will state every lever of the State must be exhausted and that this initiative is about delivering on the Government’s number one priority: Housing Delivery.
He will point to the importance of a multi-pronged approach:
- Increasing Supply;
- Removing the barriers to home ownership;
- Ensuring the Planning System works more affectively;
- Land must be zoned and serviced;
- Infrastrcture must be in place to support families;
- Construction must be viable; And
- Finance must be available.
The Tánaiste will point to the fact that with this €600 million of equity, up to €2 billion of finance will be unlocked, delivering up to 5,000 new homes.
The announcement will be made on Tuesday by the Tánaiste and Minister Browne and is in conjunction with the ISIF and the Banking & Payments Federation Ireland (BPFI).
As part of the announcement by Government, a mentorship programme to SME developers in collaboration between the banks, Enterprise Ireland, the Department of Enterprise, Tourism and Employment and their representative bodies.
The focus from the announcement will be accelerating the construction of homes.
The partnership will seek to drive and provide much needed equity capital to SME developers to enable the delivery of increased housing across all tenure and dwelling types, to benefit families across the State.