The Social Democrats are moving a motion in the Dáil tomorrow calling on the government to scrap this latest sweetheart deal for developers.
The government must scrap its bizarre plan to gift developers up to €144,000 per apartment and instead use the money to deliver affordable, social and cost-rental homes, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The Social Democrats are moving a motion in the Dáil tomorrow calling on the government to scrap this latest sweetheart deal for developers. Incredibly, under the Croí Cónaithe proposal, the government intends to gift developers €450 million – up to €144,000 per apartment – without securing any reduction in the sale price of those apartments.
“This scheme has been constructed with only one thing in mind – to bail out private developers. There are no affordability measures, for the taxpayer or home buyers, included at all. In fact, those hoping to eventually purchase a two-bed apartment will need incomes of more than €100,000.
“In effect, the government has proudly announced the creation of an Unaffordable Housing Scheme – and is rewarding developers for constructing apartments that they, apparently, can’t afford to build but that the State is happy to heavily subsidise.
“This is the third time, in seven years, that we have been told apartment building is unviable. On each occasion, a laundry list of developer demands was introduced by successive Housing Ministers.
“In 2015, former Housing Minster, and Labour leader, Alan Kelly slashed apartment guidelines, including the minimum size of apartments, because he said it would make them more affordable and boost supply. It did not.
‘In 2018, then Housing Minister Eoghan Murphy slashed the guidelines for build-to-rent developments, further reducing apartment sizes and eliminating the need for apartment mix and outside space.
“Why is the approach of this government always carrot for developers and stick for renters and home buyers – who are expected to pay exorbitant rents and house prices to help boost developers’ bottom lines?
“The government must scrap this latest bailout for developers – before any more public money is wasted. Instead, it needs to get serious about its responsibility to deliver affordable purchase, social and cost rental-homes.”
17 May, 2022