Council paid above guide to save Rochestown estate from dereliction, says council official

Acquiring 15 homes in Rochestown for significantly over guideline prices was necessary to rescue a site from dereliction and anti-social behaviour, the city council’s chief executive has said.

Councillors voted in favour of the 'taking in charge' of the Herbert Lawn estate in Belmont, Monfieldstown, at the most recent meeting of Cork City Council.

A report by the Local Government Audit Service into the city council in 2024, seen by The Echo, expressed concern about the amount paid for the properties due to the need for extensive civil works.

The audit notes that funding from the Department of Housing, Local Government, and Heritage was provided to the council in March 2021 to purchase four houses in the estate; however, the formal acquisition was delayed due to issues with the water connection.

Having resolved the matters, the council formally acquired these houses in 2024 at the original agreed price of €320,000 each.

In 2024, the council purchased an additional 15 houses in the same estate for €6.6m, an average cost of €440,000 per unit, which included “abnormal costs in the form of extensive civil works to replace some of the original infrastructure, as required by Uisce Éireann”.

This purchase was approved and funded by the department, though the auditor noted: “The average cost per unit of €440k significantly exceeded the department's maximum cost guidelines for social housing.” 

The council’s chief executive, Valerie O’Sullivan said: “Several exceptional factors, in what had become a site for dereliction and anti-social behaviour as well as extensive infrastructural works, meant that the department supported Cork City Council's funding application.

“The council will continue to refer to the department's cost guidelines in negotiations for acquisition of new build, turnkey residential developments for the provision of social housing.”

 Labour councillor for the area, Peter Horgan, said that returning properties to use was the most important thing, but that the potential overpayment underlines the need for compulsory sales orders which cap prices.

He told The Echo: “The acquisition of homes is a positive matter and the council is constrained by the market at present. These homes were vacant for so long which is an antisocial act in its own right.

“Government should be supporting councils in acquiring such properties by installing specific compulsory purchase and sales orders that allow a max limit of cost to the State if the owners are unwilling or lethargic about restoring such homes to use via the private market.”