Proposed affordable housing in Mayo county town 'far too expensive'

THE affordability of a proposed 35-unit affordable housing scheme in Castlebar has been questioned by Independent Councillor Harry Barrett.

Homes in the Heather View development in Snugboro will be priced between €260,000 and €300,000.

But Councillor Barrett wonders how young couples can aspire to raising up to €30,000 for a deposit, whilst paying rent, saying €300,00 for a three-bed semi is 'far too expensive'.

As first-time buyers their combined income would be around €65,000, moving up to €77,000 if not first-time purchasers, he said.

Councillor Barrett said he welcomed the scheme as a step forward but the price points need to be looked at again.

He received clarification that the scheme is a private development. The council has prepared a funding application under the Affordable Housing Local Authority Purchase Scheme.

Councillor Michael Kilcoyne said a lot of this is pure speculation and the figures have not been worked out.

There is a real need for affordable housing, he said, noting how if two people are working and receiving the minimum wage, they will be over the income threshold to get social housing.

Councillor Donna Sheridan said the scheme is welcome though she expressed disappointment that there is no affordable housing element in the Lawn Park social housing project. They need to have an affordable element in the town and district.

On the deposits issue, she pointed to the lower end prices too, where a joint income of €56,000 applied. And there were income tax claimbacks available too to help people meet their deposit.

Municipal head David Mellett explained the price mentioned is based on the all-in cost of the building, and then under the affordable housing scheme there is a subsidy you get to discount the all-in price. That is at most a €75,000 subsidy towards those houses.

The local authority take an equity in the property for that subsidy too. The price mentioned is based on all-in price. “It is not a price we set.”

Councillor Barrett declared the system as 'bonkers'. It is, he said, 'a bonkers scheme by a government that has lost control of housing'.

* Published under the Local Democracy Reporting Scheme