Concerns pricing of new affordable homes in Cork remains 'out of reach for a lot of people'

CONCERNS have been voiced that the pricing of homes under the first of the new affordable housing schemes to be launched by Cork City Council are “out of reach for a lot of people”.

Clancy & Lyonshall Limited, in partnership with Cork City Council, published details of the Newton Heights development on Boherboy Road, Lotamore, in recent days.

Two-bedroom houses are being made available for purchase from €217,500 and three-bedroom houses from €243,000.

Sinn Féin councillor Eolan Ryng said he has concerns around the pricing of the units.

“Affordable housing is badly needed. The market is broken. Huge amounts of people are locked out of home ownership.

“With this in mind, it’s essential that the affordable housing scheme is truly affordable.

“I have a concern that the prices announced for the Boherboy scheme are in line with market rates and in some instances, housing of a similar nature nearby is advertised at a lower price on Daft.ie currently,” Mr Ryng said.

Pricing 'over the top'

Independent councillor Ken O’Flynn also said he believes the pricing of the units is “over the top and too high”.

Mr O’Flynn said:“This is the best that we can do as Cork City Council and I’m delighted to see that there are affordable houses coming, but this doesn’t answer the problems of many of my constituents. It’s still out of reach for a lot of people in Cork and throughout the country,” he said.

Mr O’Flynn said he believes the Government “hasn’t gotten to grips with what an affordable house really should be,” and said more land needs to be rezoned for housing to reduce the value of sites.

Potential to enable more people to buy a home 

Green Party councillor Oliver Moran said the scheme “isn’t suitable for everyone, but it has the potential to enable more people to purchase a home”.

“Combined with a local authority home loan, the target group is for households with an income of roughly between €50,000 and €80,000 for the three-bedroom homes. Anyone who believes they otherwise wouldn’t qualify for a mortgage for a home like this should look at the local authority home loan website.

“There is a simple calculator on the website that will help people see what they can qualify for. That applies to both couples and single people,” he said.

Mr Moran said he has concerns over how the houses will be allocated. “Seventy per cent of the houses in this scheme will be allocated on a first-come, first served basis from Tuesday, August 16. The remaining 30% will be allocated on a lottery basis.

“That’s something that a number of councillors were concerned about, in case the first-come, first-served portion creates unnecessary competition, when people are already stressed.

“Unfortunately, that’s set in national legislation, so councillors didn’t have scope to remove it. However, officials have agreed to monitor the experience here in Cork and report on it.”

Fine Gael councillor Joe Kavanagh said he “very much welcomes” the launch of the scheme delivering “much-needed housing”.

“These are set at market prices, applying the National Discounting Affordable Housing Scheme guidelines, which have been set down to deliver the best possible prices for these housing units,” he said of the pricing.

A total of 117 affordable homes, consisting of 25 two-bedroom houses and 92 three-bedroom houses, are being made available for sale by Clancy & Lyonshall Limited at the site, under affordable-dwelling purchase arrangements, via the Affordable Housing Act 2021 and associated Affordable Housing Regulations.

The units are under construction across a five-phase delivery programme, with 22 units in the first phase available for occupation at the time of application and a further 15 units in phase two available for occupation in the third quarter of this year.

Number of schemes progressing 

Cork City Council said it is progressing a number of affordable housing schemes, with varying prices.

“The council has a number of schemes it will be progressing as part of its Affordable Housing Scheme programme over the coming months and the first launch is of Boherboy Road.

“The cost of provision of every scheme will vary due to the delivery costs of the units involved. The council administers its schemes in accordance with the national affordable housing legislation and regulations, as well as the funding systems currently in place.”