Brian Stanley, chairman of the Public Accounts Committee (PAC) in the Dáil, has criticised the still high costs of new homes under the affordable-purchase scheme in south Dublin. In a recent discussion with the Land Development Agency (LDA), dubbed responsible for delivering affordable and social homes, Stanley voiced his concerns.
John Coleman, the CEO of the LDA, informed the PAC about Shanganagh Castle Estate’s first phase, launched last month, which is their maiden project on state-owned territory. The estate shall encompass 597 residences, including a blend of reasonably-priced purchase properties, cost rentals, and social homes. The application gateway for these homes is operational and is attracting significant interest.
This development caters to individuals who are unable to buy private-sector residences and don’t meet the criteria for social housing. The minimum selling price for a two-bedroom terraced home is €334,600.
Under the affordable purchase scheme, Dún Laoghaire-Rathdown’s local council will retain an interest in the property. If the gross income of a household falls below €96,795, these two-bedroom terraced houses, valued at €478,000, will have up to a 30 per cent stake owned by the council. If homeowners decide to sell, they must repay the received equity.
Stanley questioned the borrowing levels required for people to afford these homes. The LDA’s CEO responded saying although they didn’t establish the affordable purchase policy, their role is to apply it based on the house’s market value.
In the PAC meeting, it was reported that Dún Laoghaire-Rathdown had provided the land for less than €10,000 per housing unit. Despite being built on almost ‘free’ land by an LDA-hired builder, and being ‘subsidised’, Stanley pointed out that the housing at Shanganagh was still priced exorbitantly high.
Mr Coleman pointed out that the market value in Shankill tends to exceed the usual rate. He compared this to other places like Navan, Waterford, and Mallow where they have managed to sell affordable houses at rates lower than Shankill’s. Mr Stanley, on the other hand, highlighted that some areas appear more costly due to certain perceptions.
He emphasized that the land for construction was bought for a negligible amount, and the costs associated with construction materials and labour are equivalent to those in regions of Ireland with the most affordable housing prices. Mr. Coleman added that construction in some locales is sometimes less expensive and provided some background information, explaining that the LDA’s major focus is, in fact, on cost rental housing rather than affordable buying.