Department of Housing pulls funding for 140 social homes in Dublin as units ‘prohibitive’ in value for money
The Department of Housing has confirmed that it pulled funding from a social housing scheme in Dublin 9, that was to deliver 140 homes to Dublin City Council (DCC).
A spokesperson for the department said the homes, which make up the majority of the 168-unit Daneswell Place in Glasnevin, were deemed “prohibitive in terms of value for money”.
The units were due to be acquired for social housing by Co-operative Housing Ireland (CHI), an approved housing body (AHB), but last week the Irish Independent reported that this deal had fallen through.
The tranche included 58 one‑bed homes, 59 two‑beds, 11 three‑beds and 12 studios earmarked for DCC’s social housing stock.
But these properties have instead appeared on property website Daft.ie for private rental, with one-beds listed for €2,400 a month, two-beds at €2,900 and three-beds coming in at €4,500.
The department spokesperson said “detailed consideration” was given to funding the scheme, which is being developed by the Eastwise Group.
“As with all applications for funding support, it was examined from several perspectives, including a technical assessment by our quantity surveyor team,” they said.
“While the application fulfilled the broad parameters of the funding scheme, the units were of a very high cost and were prohibitive in terms of value for money.
The properties are now appearing on Daft.ie, with a starting rent of €2,400 a month
“Accordingly, the department requested CHI to renegotiate with the developer in order that it might enhance the value for money position, but these negotiations did not result in a reduction of the capital costs.”
The spokesperson said the Part V element of the scheme, under which DCC is receiving 20 units for social housing, is still expected to proceed.
Fergus Lynch, chief executive of Eastwise Group, told the Irish Independent that the firm entered into a contract to sell 160 apartments, including the Part V units, to CHI in 2023.
“While constructing the units, we were advised by CHI that they were going through the process of obtaining funding approval to purchase the units,” he said.
“In 2025, the first block of 48 apartments was complete, but we were informed that funding had not been approved. With units ready to occupy, we were left with no option but to change to private rental.
“It is unfortunate that we could not sell the units to CHI for this development as originally envisaged.”
Speaking previously to the Irish Independent, local Green Party councillor Feljin Jose said the situation highlights serious failings in the funding model for AHBs.
“We’ve got this bizarre model where an AHB said they might buy it and then it didn’t go through. Now we’re stuck with people paying extortionate rents for them.”
Mr Jose said the project was listed on DCC’s housing delivery reports for close to two years, but had vanished without explanation in March this year.
“Now, I’m wondering how many of the other projects on the social housing report are also in a precarious situation where it’s not actually funded and may not actually exist,” he said.