PRIVATE buyers are being forced out of the Limerick property market because of social housing development deals between Limerick City and County Council, acquired housing bodies and private investment fund companies.
This follows a claim by Sinn Féin councillor Sharon Benson that the council is implementing a policy of “rolling out the privatisation of social housing in Limerick”.
She says she received figures from the local authority which “show the growth of a new model of long term leasing of social housing to Limerick Council from private Investment Funds”.
“The figures released by the Council show no less than seven different Investment funds currently supply 49 houses under leasing arrangements, meaning that that the council will pour millions into paying rent for housing without actually ever taking ownership of the homes.
“What we are witnessing here is government policy to roll out the privatisation of social housing in Limerick. Instead of instructing the council to build up its own housing stock, it is now policy to pour millions of tax payers money into long term leasing from private investment funds.
“This is huge money for those funds in return for which the council don’t get to own a single brick of one of those houses. It’s turning the housing crisis into an income stream for big business.”
Cllr Benson said the long term effect of the policy would be “to enrich investment funds and effectively impoverish local councils like Limerick by directing them to spend money on leasing rather than buying and building local authority housing”.
Meanwhile Fine Gael councillor Olivia O’Sullivan claims that “bulk purchasing of new developments by the council and Approved Housing Bodies (ABH) is creating an unequal housing market and cutting options for the private buyers, many of whom are first-time buyers struggling to get out of the rental market”.
Cllr O’Sullivan claimed that the names of private buyers had been placed on waiting lists for a 24-housing development at Laurelville, Mill Road in Corbally, but 13 of the homes were acquired by Cluid Housing for “social rental” and at least two deposits were returned to prospective private buyers.
Cllr O’Sullivan provided details of the Council’s “mixed tenure policy” which provides for 50 per cent affordable, 30 per cent social, and 20 per cent private ownership.
However, she claims that the Laurelville development contravened that policy.
She highlighted other “turnkey acquisitions” in Limerick where 259 homes are being built but only 48 are available on the open market.
Cllr O’Sullivan said the Council acquired a new development of 14 houses in Redgate on the Old Cratloe Road where none of them were on the open market.
“A development of 110 houses on the Condell Road is all going to AHB social rental by Cooperative Housing Ireland and none will be offered to private buyers,” she added.
“A council self-build” development of 43 houses is being built on the Condell Road which initially had no houses going on the open market, although 22 units are now earmarked for a new pilot incremental purchase scheme operated by the council”.
“A proposed development of 92 houses at Knockhill on the Ennis Road has received planning permission with 48 houses to go to the open market with the Council proposing turnkey acquisition of a 44-unit apartment block,” she added.
A spokesman for Cooperative Housing Ireland said hat they provided homes to low-income households who, on average, have been on local authority housing waiting lists for more than seven years.
“The housing journey of our Members is precarious, many will have experienced homelessness, overcrowding, and unsuitable accommodation,” he added.
“We provide homes to those most in need on a truly affordable rent with life-time security of tenure. We work in partnership with local authorities, our members, builders, and developers to build homes and sustainable communities.
“These homes will forever be available to people on low incomes, providing value for money to county and city councils, the Department of Housing, and ultimately all the citizens of Ireland,” he concluded.
A spokesman for Clúid told the Limerick Post that they were “committed to working in partnership with Limerick City and County Council to meet the housing needs of the people it serves. They would do this “on both local authority and privately owned lands through new build construction and, in some cases, acquiring turnkey properties”.
“We will continue to work with Limerick City and County Council on the Corbally project and we are committed to reaching a positive conclusion for all stakeholders,” he added.
