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Investigation needed into rising cost of social housing tenders in Dublin City - Eoin Ó Broin TD

13 January, 2021 - by Eoin Ó Broin TD

Sinn Féin spokesperson on Housing Eoin Ó Broin TD has called for an investigation into the dramatic rise in tender prices for social housing and in Part V acquisition costs in Dublin City.

Teachta Ó Broin said:

“There has been growing concern with the dramatic increase in tender prices for social housing and the acquisition costs of Part V units in Dublin City. 

“This issue is in the spotlight again following revelations that property developer Glenveagh has provided estimated costs of €33.4m for 71 apartments it is planning to sell to Dublin City Council for social housing. 

“Some of the figures quoted in the piece are outrageous. A three-bed apartment is estimated to cost €791,531, €641,899 for a two bed apartment, with one-bed apartments estimated to cost €408,074 each. 

“Rising costs are not limited to Part V acquisitions from private developers. 

“A report from DCC Housing Manger Brendan Kenny published at the end of December indicates that there has been a huge increase in tender costs for social housing construction. 

“The report outlines that on seven of DCCs existing projects that are currently under construction and close to completion, the average unit all-in cost of the 461 units is €429,271. 

“I intend to raise the issue of rising costs with the Minister for Housing. He should task the Housing Agency with investigating the issue and to produce a report with recommendations on what action should be taken to reduce costs. 

"Among these actions the Housing Agency should consider; amendments to Part V legislation to ensure taxpayer gets value for money; reform of the procurement rules and the public spending code; procurement framework agreements for contractors; a State company to introduce competition into the marketplace; and the direct build of homes by local authority employees.”

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