House leasing policy ‘a breathtaking waste of public money’ — Cllr

Long term leasing of properties for social housing has been described as “a breathtaking waste of public money” by a Navan councillor.

Cllr Eddie Fennessy described as “scandalous” the fact that 66 housing units are being leased in Navan to provide social housing at a cost of €21m over 25 years, but the Council cannot say who will own the properties after that period.

“The sheer waste of public money is on full display in the figures. It is breathtaking.

“What I also find scandalous is, despite the State making such a significant financial investment in these properties, the Council doesn't know who will own them at the end of the leasing period.”

At last week's meeting of Navan Municipal District Council, Cllr Fennessy has asked for a breakdown of long term Part 5 leasing and approvals in Navan for 2019, 2020; the annual cost of each lease; the lease review period in each case; the length of each lease; and if the property remains in private ownership at the end of the lease term or ownership transfers to the local authority or a housing authority.

Part Five housing are homes developers are obliged to build for social housing under the terms of their planning approval.

Cllr Fennessy was told there are 54 units in Dunville being leased at €734,400 per annum over 25 years, with a review period of 36 months. There are 12 units in Flower Ville, Flowerhill at a cost of €144,840 per annum, also on a 25 year lease which can be reviewed after 36 months.

In both cases, the Council said that the ownership of the properties were a matter between the housing body Tuath and the developers.

“Meath County Council are not privy to the terms agreed post lease period,” Cllr Fennessy was told in a written reply.

“Over a 25 year leasing period that equates to a total cost to the tax payer of €21,981,000 or €330,000 per housing unit. I'm also concerned about the maintenance cost associated with the properties,” he said.

“I am genuinely shocked at the Council's response to my question.

“Who is going to pick that tab up? The ordinary workers and families of this State? Long term leasing schemes make no economic sense whatsoever. It would have been cheaper for the Council to build 64 housing units or purchase them on the open market.

“Had they done so, the revenue generated from rent would recoup that cost and ease the burden this deal places on the backs of working people, whose pockets I might add, have been well and truly picked to fund this particular scheme.”

Cllr Fennessy said poor government policy and insecurity within the housing sector has created a major social imbalance in this state.

“Every day, my office is inundated with people desperately looking for help to access public and private accommodation. Long term leasing arrangements will not fix housing difficulties in this State. Ask any housing expert and they'll tell you.

“The only way to solve the crisis is for the state to commence a large scale social and affordable house building programme.

“Until we have a government who understand that reality, it'll be more of the same, to the detriment of society as a whole,” he said.

The Meath Chronicle has approached Tuath for comment.