‘Brilliant in theory, atrocious in practice’ - Affordable housing grant boost for Galway
Independent Galway County Councillor Thomas Welby believes a recent increase in the Affordable Housing grant allocation could offer a short-term reprieve in the county’s housing crisis, but warns the system remains deeply flawed.
Cllr Welby revealed that during a special budget workshop Housing Director Damien Mitchell had verbally confirmed an increase in the grant allocation for County Galway, rising from €50,000, as set in June 2021, to €75,000.
Cathaoirleach David Collins, who also attended the meeting, confirmed the increase to the Irish Independent, adding that Mr Mitchell said the increase had been handed down from the Department.
The groundwork for the adjustment was laid in December 2024, when then Housing Director Michael Owens confirmed a formal request had been submitted to the Department to amend the allocation amount.
Speaking to the Irish Independent, Cllr Welby outlined how the increase could unlock more realistic pathways to affordable housing, while also shedding light on the bureaucratic hurdles that have stymied progress.
The local authority receives the money from the government to apply to each Affordable Housing unit for it to qualify as an Affordable House.
The current framework stems from a 2021 circular issued by the Department of Housing, Local Government and Heritage, a document Welby refers to as “the Bible” of statutory requirements.
Under the Affordable Housing Fund, buyers can purchase new homes at a reduced price, helping bridge the gap between mortgage capacity and market rates.
However, the scheme stipulates that the final price of a home, after the grant is applied, must be at least 15pc below market value. Crucially, the circular makes no provision for inflation, discount adjustments, or valuation methods in areas with few comparable sales.
For instance, a three-bedroom home in Headford listed at €300,000 would need to be brought under €255,000 to qualify. But funding limits are tied to housing density: areas with fewer than 35 dwellings per hectare, like Headford, fall into the lowest bracket, capped at €50,000.
Cllr Welby suspects only Briarhill in County Galway meets the middle-density threshold of 35–50 dwellings per hectare which are allocated €75,000. The highest bracket, over 50 dwellings per hectare, is largely confined to urban centres like Dublin, where apartment complexes dominate. Those spaces receive €100,000.
“Towns such as Oughterard, Portumna, Moycullen, and Headford are all represented in that lower bracket,” Cllr Welby said. The major challenge with affordable housing is the lack of built homes. As houses get more expensive in these areas, they fail to qualify for the higher amount of allocation.”
“When you look at this density of up to 35 units, in those towns, which are large enough towns, the densities that we deal with from a county council's perspective is 16. We were always going to be under the 35 for these large towns.”
“The theory of this is brilliant, but the practicality of it is atrocious,” he added.
Cllr Welby also criticised the lack of updates to the 2021 document, noting it fails to reflect the 12pc per annum inflation increase seen since its publication. While rising home prices make the 15pc discount easier to achieve, he warned it comes at the cost of applicants paying more overall.
“I think it's an element of ignorance, and I think they just can't get ahead of the game,” he said of the stagnant process. “I think the councils are focusing on any development that has got planning, any development that they can potentially get their hands on, and they'll buy it because they just can't get ahead of the game.”
As homes become “dearer” Cllr Walby said, the 15pc decrease from market value does get easier to achieve but at the cost of applicants paying significantly more for their home through the scheme.
Having long advocated for more strategic use of public funds, Cllr Welby offered a bold alternative: “I would scrap the whole thing, come back with a €100,000 grant which would make it very affordable. We move out from churning out as many council houses as we can to churning out as many affordable houses as we can.”
“And it gives people long-term futures. It would give genuine certainty to people.”
“We will always have a need for social housing, but we shouldn't be as dependent on it.”
The Galway County Council’s housing team was contacted by the Irish Independent regarding the grant increase for comment.