This deal typifies everything that is wrong with the government’s approach to housing
The government must explain why State resources are being used to bankroll developments for investment funds, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
Deputy O’Callaghan commented after it was revealed that Home Building Finance Ireland (HBFI) is financing the construction of 211 apartments that will be bought by one of the largest institutional landlords in the country, Urbeo.
“When the previous government established HBFI in 2019, its stated purpose was to provide finance to small and medium sized builders to construct much needed homes.
“However, the mandate of HBFI was subsequently changed and funding redirected to large schemes, some of which are build-to-rent developments that have been block bought by investment funds.
“These are apartments that will never be available to workers and families to buy and which will be priced well out of reach of these same buyers to rent.
“The latest example of this is Windmill development of 211 apartments in Clonsilla, which has been entirely funded by HBFI.
“Why is the State providing funding for the construction of apartments that will be rented at exorbitant rates by an investment fund to boost its already huge profits?
“It is bizarre that precious State resources are being used in this way, particularly when there is no agreement to reduce rental rates in return for the provision of these funds.
“This deal typifies everything that is wrong with the government’s approach to housing. There has been no attempt to prioritise the delivery of affordable homes and the only winners are the developer and the investment fund.
“The government must outline how many build-to-rent schemes HBFI has funded; what due diligence was done before these funds were released and how much State money has been directed to developments that have been block bought by investment funds.”
3 October, 2022