Mayo councillor welcomes rebranding of Affordable Housing Scheme
Castlebar councillor Harry Barrett welcomes rebrand of Mayo affordable housing scheme saying 'at least its honest'
Mayo County Council's Affordable Housing Scheme has been rebranded as the Starter Home Purchase Scheme, prompting a local councillor to remark that 'at least it's honest’.
Details of the new Starter Home Purchase Scheme were given to members of the Housing Strategic Policy Committee who were also informed that applications for 35 new homes in Castlebar are expected to open later this year.
Providing an update to councillors, Olivia Gallagher, Head of Housing, said the change is part of a national rebranding exercise and does not affect how the scheme operates.
“The Affordable Housing Scheme no longer exists in name and is now the Starter Home Purchase Scheme,” Ms Gallagher stated. “Nothing changes in terms of the scheme itself. We simply have to update our webpages and communications to reflect the new branding.”
She explained that the Starter Home Purchase Scheme now sits under the wider Starter Home Programme, which also includes the First Home Scheme, the Vacant Property Refurbishment Grant, and the Help to Buy scheme.
She further stated to councillors that preparations for the 35-home development in Castlebar are progressing well following a series of meetings with the developer.
“We've had four lengthy meetings with the developer, and it's progressing really well,” she said.
To help prospective buyers prepare, Mayo County Council will host a series of public information events with council staff, mortgage advisers, the developer, and estate agents available to answer questions about the application process and mortgage eligibility.
“We want to make sure everybody is ready to apply,” she further stated.
Applications are expected to open during the fourth quarter of the year, subject to the required notice period with the Department of Housing. As with previous affordable housing schemes, applications will be processed on a first-come, first-served basis.
The development will comprise 35 two- and three-bedroom homes, including a mix of mid-terrace, end-terrace, and detached properties.
Ms Gallagher said applicants will be able to discuss their eligibility during the information sessions, with council staff providing guidance on purchase prices, equity supports, and affordability calculations.
She said the maximum State equity contribution available under the scheme is €75,000, depending on an applicant's purchasing power, which is assessed using factors including income, savings, mortgage approval, and Help to Buy eligibility.
Providing examples, Ms Gallagher said a two-bedroom mid-terrace home will have a market value of €335,000, while a three-bedroom mid-terrace property will be priced at €370,000. With the maximum equity contribution applied, the purchase price of the three-bedroom home would reduce to approximately €295,000.
Castlebar-based Independent councillor Harry Barrett described a mortgage of as €295,000 ‘eye-watering’ for many young couples and argued that the current model benefits developers while leaving buyers with substantial monthly repayments.
“My honest opinion its a developer's dream. They get full market value, and we then promote it and sell it for them. It’s just unbelievable and a symptom of a broken system,” he said.
In response, Ms Gallagher acknowledged the challenges facing first-time buyers but said the council is working within the realities of today's housing market.
“Unfortunately, councils are not building houses any cheaper than around €300,000 a unit right now, and that's before site costs,” she said. “I'm not saying the market is right, but that's the reality we're dealing with.”
Cllr Peter Flynn further stated that it was great news, however, he hopes to move this progress to other towns across the county.