Ministers have defended efforts to deliver affordable homes after it emerged that buyers in one of the first schemes in Dublin will have to pay up to €475,000 for a three-bed home.
The price is almost €170,000 more than the expected level when city councillors approved the scheme in late 2021.
The high cost of the houses at Oscar Traynor Woods, Coolock, Dublin 17, 16 of which are due to go on sale next month, means purchasers can have incomes exceeding €106,000 and still qualify as eligible for affordable housing subsidies.
Prices are up to 55 per cent higher than originally indicated, with one beds costing €264,358-€308,750, two beds €355,760-€427,500 and three beds €399,731-€475,000.
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The homes have been built by Glenveagh in partnership with Dublin City Council. The council confirmed on Wednesday the price increases were not as a result of higher construction costs for Glenveagh as, it said, “developer’s costs for the construction of these units was fixed” at 2020 prices.
Rather the council said the prices now being asked for the houses were based on a discount from market value of 18-20 per cent, which was it said in excess of the legislative requirement for houses to be 15 per cent below market rates. The market values had been determined by the council’s valuers and an independent estate agent this month, it said.
Sinn Féin housing spokesman Eoin Ó Broin described the prices as “eye-watering”.
Minister for Housing Darragh O’Brien was asked at press conference in Dublin on Wednesday if he believes €475,000 is affordable.
He said some of the larger three-bedroom houses at Oscar Traynor Woods will range from €399,000 to €475,000 depending on the buyer’s income and that “very few” will be at the higher price. He said the prices would start at €264,000 for some of the homes and defended the Government’s record in providing affordable housing.
“We delivered over 4,000 affordable homes actually last year, we’re expected to do over 6,000 this year,” he said.
“Oscar Traynor Woods has been a site that has been vacant and has been held up – by mostly Opposition parties I might add – for the guts of 30 years.
“Our Government and my department are funding this development to the tune of over €110 million to deliver 850 fantastic homes for our people.”
At a separate press conference, Minister for Public Expenditure Paschal Donohoe was asked if he thinks €475,000 is affordable.
“I accept it is still expensive for many at the moment,” he said. “But the key point is in the absence of that scheme, the price of that property would even be higher.”
Mr Donohoe added: “As we begin to see interest rates change and, as I hope, we begin to see the cost of building a home begin to improve after many years of inflation going through the roof, I’m confident that the affordable housing schemes that we have will deliver more homes and will deliver them at even more affordable rates.
Independent city councillor John Lyons is calling on the council chief executive Richard Shakespeare to pause the sales to allow the local authority to scruitinise the figures. Mr Lyons said he had “very serious and significant concerns” regarding the price hike and is submitting an emergency motion seeking to convene a council meeting to “explore and establish how the price range” had increased.
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