O’Rourke blasts ‘nasty, hidden penalties’ in Govt’s Affordable Housing Scheme

The government's affordable housing scheme has been described as nothing short of a disgrace, as a new scheme in Kells launched with a “minimum purchase price” of €322,500 for a three-bedroom terraced home.

Deputy Darren O'Rourke said the so-called “affordable” housing schemes are nothing short of a disgrace - “failing on every measure that matters to working people in Meath and across the state.”

In the Dáil last week he spoke of the Foxwood Park “affordable” scheme in Kells and the fine print related to redemption of the council's equity which he called “a nasty, hidden penalty”.

“At Minister's Question time in the Dáil this week, I challenged the Minister for Housing on the catastrophic failure of his affordable housing policy, which is leaving thousands locked out of home-ownership despite working hard and playing by the rules.

“Housing affordability is a major, major issue in Meath, with very many people ineligible for social housing due to income thresholds, but unable to afford a house on the open market due to runaway costs.

“The Government's affordable housing scheme was supposed to help address this but the reality on the ground lays its epic failure bare.”

He said that in the first instance, there is nowhere near enough supply.

“The Government’s targets are a drop in the ocean compared to the scale of need in counties like Meath. With soaring rents and house prices, the delivery of affordable purchase homes is moving at a glacial pace - completely out of touch with the crisis facing families.

“And these homes are not affordable. Take the example of Foxwood Park in Kells. The Government and Meath County Council advertise a minimum purchase price of €322,500 for a three-bedroom terraced home. That price comes with an asterix and that asterix is doing a huge amount of work because the small print reveals the cruel truth - the full cost to actually buy and own the property is at least €405,000. For a two-bedroom end terrace, the full cost to buy and own the property is at least €375,000. In whose world is €405,000 affordable for a three-bedroom terraced house in Kells? I am sure these are fine houses and the people who buy them will be delighted but this is insane.

“These prices are miles beyond the reach of ordinary workers - teachers, nurses, retail and construction workers - who are being priced out of their own communities.

“To further compound matters, there is a premium on the council equity. The Minister has designed a scheme that penalises people even after they buy.

“Homeowners are forced to pay a premium on the council’s equity stake when they seek to fully own their home. That means if the property value rises over time, they must pay the council equity percentage on the current market value, not the original price, and in lump sums of at least €10,000.

“This is a nasty, hidden penalty that will add thousands of euros to the price of these properties.

“This isn’t affordability, it’s a financial trap that will burden families for decades.

“When I challenged the Minister on this detail he admitted that these schemes are “kept under review”, but that is cold comfort to the generation being locked out of home-ownership today or faced with punitive, additional costs.

“This Government's affordable housing scheme is failing on supply, failing on price, and failing on fairness.”

Deputy O'Rourke said we need real affordable housing - homes that working people can actually afford to buy and own, delivered at scale, with no hidden catches or future financial penalties.

“The people of Meath and across Ireland deserve better,” he said.