'An absolute bonkers scheme by a Government who has lost control of housing'

Castlebar councillors have questioned whether homes priced up to €300,000 are truly affordable for young families as Mayo's first large-scale affordable housing application moves forward.

The councillors raised serious concerns about the affordability of the county's first major affordable housing scheme, with some describing the pricing structure as 'bonkers' and warning that homes priced at €300,000 remain out of reach for most young families in the area.

READ MORE: Minister Calleary announces approval for social housing in Mayo

The debate at last week's Castlebar Municipal District meeting following news that a 35-unit affordable housing application for the Heather View development in Snugboro, Castlebar has been submitted to the Department of Housing under the Affordable Purchase Fund.

Minister of State Alan Dillon welcomed the submission as a significant milestone, describing homes priced between €260,000 and €300,000 as offering reduced options for first-time buyers locked out of home ownership. The proposed development includes a mix of two and three-bedroom terraced, end-terrace, and semi-detached houses.

However, Cllr Harry Barrett challenged the affordability of the scheme, presenting detailed calculations to illustrate the income requirements. “If a young couple of this town wants to aspire to that €300,000 home, which is probably the three-bedroom semi, they have to have a €30,000 deposit, 10 percent, and if they're first time buyer, their combined income will need to be about €66,000,” he said.

“There are very few incomes around this town on €77,000," Barrett continued. “I think €300,00 for a first time property when you need €30,000 deposit is very unachievable for most people in the context of having to spend €1,200/month on rent.”

Challenges

The councillor pointed to the challenges facing young couples trying to save while paying high rental costs. “This country is in an emergency with housing," he added, calling for a reimagining of the price points for properties being built on public land.

Cllr Michael Kilcoyne noted that couples both working on the national minimum wage would be over the income limit to qualify for social housing but potentially unable to afford the affordable housing being offered.

Cllr Donna Sheridan noted that Cllr Barrett was using the most expensive houses as example and that a number of the houses were priced at €250,000. She attempted to present alternative calculations, factoring in tax rebates available to first-time buyers. She explained that couples who have paid taxes and USC in previous years could claim back up to the 10 percent or €30,000 to cover their deposit, potentially bringing the required joint income down to approximately €56,000 for a €250,000 property.

“While it's not ideal, we have to be very clear and kind of put out the right information to people about what is there,” Sheridan said. She welcomed the scheme but stressed that “every push needs to be made now to get affordable schemes for this district.”

Cllr Blackie Gavin also welcomed the affordable housing scheme but raised concerns about infrastructure, stating the council needs to examine roads and wastewater capacity. “You won't be able to build because the infrastructure isn't there. If this town is to grow, we need to invest,” he said.

David Mellett, head of Castlebar Municipal District, clarified that the Heather View development is a private development where the developer has offered units as potential affordable housing. He explained the pricing structure: “The price is based on the auditing cost of the building, and then on the local authority affordable housing scheme, which we have applied for, there's a subsidy that you get to discount the oil in price. So in our case, we're looking at probably at most €75,000 of the subsidy towards those affordable housing.”

Crucially, Mellett noted that the local authority would be taking equity in the property for that subsidy, which can be bought back by the property owner. The council would also get a share of the sale price if the property is sold within the timeframe of the scheme.

'Bonkers'

This revelation prompted Cllr Barrett to respond: “So really they're not affordable as such, that €300,000 property is really €375,000 and we're taking a stake in it as well. The couple who are applying for this have to come along to raise the deposit, to raise their deposit and make sure their income is at the level where they can get a mortgage, and they still might not have 100 percent ownership. I think it's bonkers. The whole system is bonkers."

Barrett described the scheme as “an absolute bonkers scheme by the government that has lost control of housing,” citing families he is dealing with who are living in dilapidated accommodation or receiving notices to quit.

The concerns raised at the Castlebar meeting echo broader issues with affordable housing delivery in Mayo. Only five affordable houses have been delivered in Mayo since 2012, as part of a 50-unit social housing development in Westport recently completed.

Adding to the controversy, Mayo County Council has been given zero targets for affordable housing by the Department of Housing, despite acknowledged demand. At a recent Housing Strategic Policy Committee meeting, Director of Services Tom Gilligan said the council is “ploughing ahead with affordable housing” regardless of the lack of targets.

“We are not sitting down waiting for a target. We realise there is a need for affordable housing and we are moving ahead with that,” Gilligan stated.

Speaking back in May, Olivia Gallagher, Head of Housing at Mayo County Council, explained that Mayo did not receive a target because it had not demonstrated an affordability gap across the entire county, though she acknowledged gaps exist in Westport, Castlebar, and Ballina.

Minister Dillon has pledged to engage directly with the Minister for Housing to ensure the Heather View application receives timely review. “I will continue to push this project at every stage until the keys are in families' hands,” he said.

For now, the debate over what constitutes truly affordable housing in Mayo continues, with councillors calling for more schemes while questioning whether the current pricing model serves the needs of those most desperate for home ownership.

Funded by the Local Democracy Reporting Scheme