Scheme to deliver f lats attracts just 9 proposals
A GOVERNMENT scheme aiming to deliver 5,000 new apartments by 2026 looks doomed as just nine eligible proposals have been received from developers.
Only four contracts have been signed under the Croí Conaithe Cities scheme to date, which will deliver just 425 apartments.
Funding under the scheme is only given to new developments that have not started construction, and can prove a viability gap that would prevent the apartments being built or set them at too high a price for purchase by owner-occupiers.
The strict conditions dictate that proposals also need to be located in Dublin, Cork, Limerick, Galway or Waterford and be within walking distance of public transport.
The Housing Agency, which is looking after the administration of the scheme, only received nine eligible proposals in September, which are being reviewed before contracts are signed with developers.
This was the second callout to developers to take part in the scheme, and a spokeswoman for the Housing Agency said that ‘it is intended that further calls for expressions of interest will be issued in due course’.
The scheme was described by the Government as being part of a ‘key national policy objective’ under its signature Housing for All programme ‘to build more homes within our cities and towns, resulting in compact growth and vibrant, liveable cities’.
At its launch, Darragh O’Brien, the Minister for Housing, said: ‘Increasing supply is key to improving the housing market and this scheme will increase the supply of apartments for people to buy and live in within cities.
‘It’s about giving people who wish to buy a home and live in cities greater choice and, in turn, ensuring our cities have vibrant and strong communities.’
But Sinn Féin housing spokesman Eoin Ó Broin has said there is ‘simply no way’ the Government can meet its target under the scheme given current trends. ‘Any higherdensity apartment scheme will take at least two years to deliver, so unless there is a significant uptake in contracts over the next six months, there is simply no way this scheme can deliver on the targets set by Government,’ he said.
He added: ‘At this stage you really have to question the value of a scheme that was never going to deliver affordable homes in the first place and isn’t attracting a significant level of interest from the developing community.’ A spokesman for the Department of Housing said the department and the Housing Agency ‘are working towards the target under the scheme’.
‘Working towards the target’