The original agreement by city councillors for the establishment of “affordable” homes in Dublin city has seen property prices spike significantly, with a three-bedroom house now costing up to €475,000, a hefty increase of nearly €170,000 from the 2021 prices.
This surge in prices for the new homes located at Oscar Traynor Road, Coolock, Dublin 17, stems from high market value. As a result, even buyers with an income upwards of €106,000 may still be deemed eligible for affordable housing subsidies.
After extensive discussions and a series of failed agreements over numerous years, Dublin city councillors gave the green light for the repurposing of a 17-hectare public land plot near the Dublin Port Tunnel in November 2021. Glenveagh, the developer, committed to constructing a total of 853 homes on the land, dividing it into 40% for social housing, 40% for cost rental, and the remaining 20% to be put up for sale to workers with low to medium-income, who qualify for the affordable purchase scheme.
As per the government contracts, the initial housing rate for a one-bedroom house ranged between €204,000 and €238,000, two bedrooms from €227,000 to €284,000, and three bedrooms between €250,000 and €306,000. Winning the contract the previous year, Glenveagh fixed these prices according to the rates of their 2020 tender.
In the following month, the first batch of 16 affordable homes will go on sale under the name of Oscar Traynor Woods. However, potential homeowners are faced with a 55% price hike, with the cost for a one-bedroom house now ranging from €264,358-€308,750, two bedrooms €355,760-€427,500, and three bedrooms €399,731-€475,000.
Unlike the government’s cost rental scheme, the affordable purchase scheme lacks a defined income cap. Here, eligibility for purchase depends on the individual house’s market price. A potential buyer can have an income that equals 85% of a quarter of the house’s market price. For instance, an individual with gross earnings of €106,875 could be considered eligible.
Sinn Féin’s housing representative, Eoin Ó Broin, expressed his dismay over the steep prices, lamenting that the city councillors were misguided when they agreed to the deal.
“The disparity between the prior assurances councillors backed and the current proposal is shockingly vast,” he commented, asserting that nobody could deem these prices as “affordable”.
The Oscar Traynor Woods stands as the initial affordable housing programme in Dublin city to be marketed, aside from projects developed in Ballymun supervised by the not-for-profit housing entity Ó Cualann. Ó Cualann has piloted affordable housing purchasing programmes in this suburb since 2017, prior to the implementation of the State scheme.
Nevertheless, its most recent development, which is currently on the market, operates under the State subsidy scheme in partnership with the city council. Three-bedroom end of terrace houses for eligible buyers are priced at a maximum of €304,000, with three-bedroom mid-terrace houses reaching costs of up to €295,450.
Mr Ó Broin questioned, “Considering Oscar Traynor Road was public property, shouldn’t the prices be identical?”
For their remarks, Dublin City Council and Glenveagh have been approached.