Council officials from Dublin City have reassured that the developer of the key affordable housing plan at Oscar Traynor Road will not reap any financial gain from the now higher property prices. The residences in Coolock had been recently advertised for as much as €475,000 for a three-bedroom semi-detached home, a significant increase by around €100,000 from the original anticipated prices when the council approved the agreement with property developer Glenveagh in 2021.
Dave Dinnigan, the council’s director of housing delivery, assured council members that the elevated prices were a reaction to inflated market values and there would be no extra financial advantage for Glenveagh. The elevated property prices meant potential buyers could earn more than €106,000 and still be considered for subsidised affordable housing.
Ast a result of several years of arduous discussions and the disintegration of multiple contracts, Dublin’s city council members approved a deal in November 2021 for the regeneration of 17 hectares of public land near the Dublin Port Tunnel’s entrance. According to the deal, Glenveagh was to construct 853 homes on the site, 40% of these for social housing, 40% for cost rentals, and the remaining 20% were designed specifically for sale to individuals qualifying for the affordable purchase scheme, mainly those from the low- to middle-income categories.
Prices agreed upon by the council for one-bedroom homes were set between €204,000 and €238,000, two-bedroom homes between €227,000 and €284,000, and three-bedroom homes between €250,000 and €306,000 when the proposal was sealed.
However, the most recently advertised prices are substantially higher than the 2021 agreed upon prices. Current costs for one-bedroom homes range from €264,358 to €308,750, two-bedroom homes from €355,760 to €427,500, and three-bedroom homes from €399,731 to €475,000.
The council has clarified that the 2021 proposed costs did not account for VAT, and the 2024 prices do not consider the availability of the State’s Help to Buy Scheme, which provides up to €30,000.
At a unique gathering held on Monday night, local representatives questioned whether Glenveagh was receiving extra funds from the council beyond the sum agreed upon in 2021.
“The agreement with Glenveagh remains stable in terms of cost. No additional income for Glenveagh is generated by an increase in market value,” Mr Dinnigan clarified.
The scheme for affordable purchases was established to offer significant markdowns on market prices at the point of selling the property. “Not all societal issues, or every demographic, is addressed by any of the Department [of Housing]’s schemes, but this one plays a significant part here”, Mr. Dinnigan remarked.
“The scheme is designed as a reduction on the market price. A continual increase in market value could pose a problem in the upcoming years, but the department will certainly consider our views on this.”
Mr Dinnigan pointed out that just 20 per cent of the Oscar Traynor Woods project was composed of affordable purchases, and social housing and cost-rental tenancy would be provided with over 680 residences.
The councillors collectively passed a resolution to contact Darragh O’Brien, the Housing Minister, seeking an immediate consultation in order to deliberate over the policies surrounding affordable housing.