Barry - Low cost homes the key to housing crisis

SPEAKING to The Corkman Deputy Tom Barry said he believed freezing rents would not produce one single new housing unit, instead outlining what he beloved was the “real solution” to the housing crisis.

The Cork East TD, who owns a successful grain-drying and warehousing business, said he had asked a builder how much it would cost to build a house if given land by a local authority with planning in place.

“He said he could provide an ‘A’ rated, 1,000 sq ft home for €110,000. We could start telling people we would take them of housing lists.

“We could also incorporate a percentage, say 30% - 40%, where we could charge firsttime buyers to buy into ownership of these properties,” said Deputy Barry.

“These people would come in with relatively low, affordable mortgages – this is the real solution.

“This builder said he could build more than 50 units per year. The state has the land through local authorities; we can have this concrete solution within one year.”

In relation to rents, Deputy Barry conceded there were landlords whose properties were paid for, describing them as a “different sub-set”.

“They can afford to take less rent. I’m sure some of them are exploiting the situation. But, there are other landlords who invested in the state, buying a house as an investment for their future – for their retirement, for their children.

“But they brought into this and they will never even generate a profit. They are happy enough if they break even,”

Deputy Barry said that if they leave the market all that would be left were investment funds “who come in and out and are only out to make a profit”.

“They showed their colours during the recession when we had businesses across the country tied to upward only rents. They refused to renegotiate and drop their rents,” said Deputy Barry.

“They showed no concern for these businesses. They actually left these companies liquidate and go out of business, whereas many smaller scale landlords worked with their tenants and took reductions in rent in order to keep people in their properties,” he added.