Less than a third of the 390 rental units promised will be delivered this year, casting doubt on the government’s projections for next year.

In February, Housing Minister Darragh O’Brien announced a € 35million fund to secure 390 new homes for rent to families and individuals at at least 25% below market prices.

However, only 115 of these homes will now be delivered before the end of the year.

Sinn Féin housing spokesperson Eoin Ó Broin questioned government promises to provide 750 rental units at cost in 2022, as this year’s target is expected to be missed by such a margin.

He said the rent-to-cost model only works when local authorities and licensed housing organizations (AHBs) build houses, which does not happen.

“The principle of renting at cost is that you don’t buy a house on the open market because it’s not renting at cost, it’s private accommodation.

“The idea is to build it and the rent is charged regardless of the cost of construction and maintenance over a period of 40, 50, 60 years, that’s the rent. So give money to AHB to buy homes off the market and then trying to reverse engineer the rental cost is not the right way to go. “

He added that this year’s targets were missed because the AHBs were forced to buy on the open market, which led to these organizations buying houses that had yet to be built.

“Because licensed housing agencies ended up buying unbuilt inventory, that meant they were never going to deliver the 390 units this year.

Deliverability

“So what they have done now is they have a rental cost target for next year of 750 units, of which 250 are the ones that were due to be delivered this year but will only be put into service. next year. There are 500 more. additional next year in addition to the postponement. The question is, if they couldn’t deliver 390 in the first year, how are they going to deliver 500 more next year? “

Mr O’Brien said the first of this year’s cost rental homes was delivered by Clúid to Taylor Hill in Ballbriggan, Dublin, with tenants moving into their new homes at the end of August.

He said rents for the 25 properties were on average 38% lower than comparable open market prices in the region, ranging from € 935 per month for a two-bedroom townhouse to € 1,150 for a four-bedroom detached house. .

“Another 50 rental apartments at cost price are expected to be completed soon at Enniskerry Road, for which rental applications have already been accepted,” Brien said in response to a parliamentary question.

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