Focus Ireland has criticised the Government for only reaching a third of its target of homes built under the social and affordable housing scheme last year.
The Planning and Development Act introduced in 2002 has a provision known as Part V, which gives local authorities power to insist that up to a fifth of land in most housing developments be reserved for social and affordable housing.
According to figures contained in a new report by the homeless lobby group, however, provision of such housing reached only 30 per cent of the Government target in 2004. This rose slightly to 35 per cent last year.
Focus Ireland said the low level of completions was partly due to an amendment to the Act in 2002 that allowed cash transfers to local authorities to be introduced in lieu of housing or land. It said today it believed such payments should only be made as a last resort.
The rules applying to planning permissions were also changed. Focus Ireland said up to 70,000 houses were built in developments where social housing requirements did not apply, meaning developers escaped having to provide some 14,000 affordable houses.
Focus Ireland today published a study of the effectiveness of Part V since its introduction, entitled Building For Inclusion.Despite the problems, the study found the scheme has "great potential and can play a key role in providing housing to those priced out of the market," Focus Ireland chief executive Declan Jones said.
But he warned that delays in reaching agreements, inadequate staffing, local arrangements for agreeing costs and delays in getting approval for new social housing from the Department of the Environment Heritage and Local Government are slowing down developments.
The Labour Party's Emmet Stagg accused the Government of "failing miserably" on housing. "Despite record levels of construction, the simple fact remains that more and more young couples and hardworking families are struggling to afford their own home," he said.