Eoin Ó Broin TD launches document outlining Fine Gael’s affordable housing failure
Sinn Féin spokesperson on Housing Eoin Ó Broin TD has today launched a document outlining how Fine Gael’s €310m fund to deliver 6,000 affordable homes by 2021 has not delivered any affordable homes.
Teachta Ó Broin said:
“The €25 million Serviced Sites Fund (SSF) was established in October 2017 for local authorities to deliver affordable homes to rent and buy.
“This fund was increased to €310 million in October 2018 with an objective to deliver 6,200 affordable homes to rent and buy over the next three years.
“Local authorities could bid for the funding and up to €40,000, later increased to €50,000, would be provided to the council for each affordable home to offset the cost of the land and the site servicing.
“Homes would then be rented at below the going market rate or sold at a discount. However, the ‘discount’ would have to be repaid by the first-time buyer either alongside the mortgage or in a lump sum at a later stage.
“Only €2m of the of the €310m fund has been drawn down to date with no affordable homes yet delivered.
“To date, only two projects are on site. The 50-unit cost rental project on Enniskerry Road in Dublin and the affordable purchase homes in Botherboy in Cork.
“These homes will not be affordable for ordinary working people. The cost rental homes will see a two-bedroom apartment for rent for €1,200.
“The new homes in Cork are expected to go on the market in 2021 with a full price of €293,000 for a three-bed. This figure includes the €50,000 Serviced Site Fund and €20,000 from the Help to Buy revenue tax relief scheme.
“The Serviced Site Fund is also being used in the controversial Dublin City Council Bartra deal on O’Devaney Gardens. In this case, the average unit will have a full cost of €360,000 including the €50,000 Serviced Site Fund allocation.
“The Fine Gael flagship affordable home scheme is a failure and Fianna Fáil now have a choice to make.
“To continue with this failed model or significantly ramp up the paltry €85 million they will give to councils and approved housing bodies to deliver affordable homes to build and rent in 2021.
“If we don’t see significant state intervention in the housing market rents and house prices will continue to rise and will continue to adversely impact young people.”