'Gifting a billion to developers': Criticism in Cork of latest housing measures

EXTRA measures to the cost of €1bn agreed by the Cabinet under the Housing for All plan in a bid to speed up home building and drive down building costs have been met with mixed reaction in Cork.

The changes to the Housing for All plan agreed by Cabinet on Tuesday aim to refurbish homes faster, speed up home construction, and boost the supply of affordable rental homes.

The first measure is to scrap development levies for 12 months to encourage building by saving an average of €12,650 per home.

The second measure is to increase the pace at which vacant and derelict properties are renovated for new housing by increasing grants to cut the cost of restoring empty homes.

The third measure is for a scheme for cost-rental urban apartments and homes to rent which have planning permission but are not being progressed, which Minister for Housing Darragh O’Brien said was due to a “viability gap”.

Cork North Central TD Colm Burke said that these additional provisions are good news for home buyers, renters, and builders.

“Thousands of private and public homes are being built but we need to do more,” said Mr Burke.

“These additional measures will make it cheaper to build and refurbish a home. It will speed up new home building and drive down costs across the board.

“Housing for All is working. Thirty-thousand new homes were built last year — ahead of target — up from just 4,500 ten years ago. We can all see evidence of new construction around us in Cork.”

Mr Burke said he expects the additional actions announced will have “an immediate impact” and will increase the number of homes built in Cork over the coming years while also addressing the difficulties around unactivated planning permissions.

Opposition

Sinn Féin TD for Cork North Central Thomas Gould said there has been no indication the additional measures will deliver any additional affordable or social homes.

“With an underspend of €1bn [on housing over three years], there is no announcement of additional funding for local authorities to deliver more social and genuinely affordable homes,” Deputy Gould told The Echo.

“This will also be the third set of changes to the Croi Cónaithe grant scheme that was launched last year. While the scheme itself is not objectionable, it is badly designed, underfunded and lacks ambition. 

"Just over 600 vacant and derelict homes are to be brought back into use a year under the scheme.

“Initially the scheme was restricted to small towns and villages, then it was widened to include larger towns and cities. Now the government intends to raise the grant level,” Mr Gould said.

“It is not clear whether government is increasing the overall funding for the scheme or increasing the very modest targets, however, what is clear is that government is desperately scrambling to shore up their failing housing plan.”

Speaking to The Echo following the announcement, Socialist Party TD Mick Barry said: “The Government are gifting a billion euro to developers and crossing their fingers that this will result in an increase in housing output.

“Past experience shows that the likely result is a boost to developer profits and a disappointing return for the monies spent.

“What we really need instead is the establishment of a not-for-profit state construction company and a radical plan to build public housing on public land.”