Sinn Féin has revealed a new housing initiative offering potential buyers with yearly earnings up to €90,000 the opportunity to purchase economical houses starting from €300,000. Yet, after these affordable homes are erected, the land will remain in the possession of the State, with conditions applied on the sale and rental of the properties. This proposal also pledges monthly rents not exceeding €1,000, catering particularly to individuals earning too high to qualify for municipal housing and unable to acquire a house.
Sinn Féin argues its plan renders an effective separation of land and site servicing expenses from building costs, leading to reduced prices. Under the scheme, the State will absorb all land-related fees while maintaining land ownership, as per the party’s blueprint. Home buyers will purchase the property at construction cost and receive unlimited, free access to the public land. This plan involves a legally enforceable covenant offering them and their future generations indefinite usage of it, subjected to two terms.
The purchased property cannot participate in the domestic rental market. If the owner leaves, temporary renting is allowed, with rates determined according to the local authorities’ affordable rental scheme. If sold, only another economical buyer can buy it at the then-current price, a measure the party claims will guarantee the house’s prolonged affordability for future owners.
Promising 50,000 affordable homes for renting and purchasing over the next five years, the programme forecasts an overall cost of €13.2 billion, which will be covered by €6.9 billion from approved exchequer funding and €6.3 billion in ‘non-voted spending’. This includes loans secured by local authorities and approved housing bodies from the Housing Finance Agency and other entities.
The policy document emphasises ceiling levels for housing costs for tenants in cost rental schemes and mortgagors in affordable purchase schemes, suggesting these should not exceed one third of net income. The scheme aims to include affordable purchase schemes accounting for 50% of the total homes. The projected prices will range between €250,000 and €300,000, adjusted for size and location, with the target demographics being households that have mortgage approval and a combined yearly income not exceeding €90,000.
The stated price range will be periodically scrutinised and modified according to wage fluctuations, inflation in the construction industry and changes in interest rates.
Building on land constitutes 25 to 29 per cent of a home’s total development cost, this varies according to location. A Public Housing Fund contribution forming approximately 20-30 per cent of total development expenses is anticipated, with the condition that development levies are exempted.
Mortgage financing will be provided in accord with pre-existing regulations from established banks and alternative lenders.
Cost rental accommodation will be allocated to households in Dublin that have a net income not exceeding €66,000, and €59,000 for households outside of Dublin. The party has committed to offering homes via AHBs and local legislations, with tenancy availability being communicated through the Housing Agency via a central portal as well as on individual social housing landlords’ websites. The efficiency and effectiveness of the current administrative procedures that underlie affordable cost rental strategies will be examined and amended as necessary.
Once more, contributions from the Public Housing Fund would absorb all land-related costs, as well as alleviate development levies. Contributions are anticipated to fluctuate between 30 and 55 per cent of the total development cost. The state would continue to hold land ownership, providing a perpetual lease to a social landlord at no cost on the premise that homes remain at cost rental levels.