Derelict property in Mayo bought for over €500,000 now worth €175,000 and could cost taxpayer nearly €1m to turn into social housing
A derelict four-bedroom house in Atterish, Westport could cost the taxpayer close to €1m as it is being refurbished for use as social housing.
The property was acquired through a compulsory purchase order (CPO) on March 14, 2016 for €585,000.
It was one of five houses bought under CPOs amid concerns they would be affected by the construction of the northern relief road linking Westport and Castlebar.
Since then, the house in Atterish has been left vacant and has become derelict. It is now valued at €175,000.
This is a 70pc drop in value, during a time when other properties in Westport and Castlebar have continued to increase in value.
Remediation works are estimated to cost around €299,435 for the house, while the legal and administrative fees are estimated at €7,500.
Taken together with the original CPO price, the total cost to the taxpayer could reach around €890,000.
The council intends to convert the house into social housing, meaning there will be no financial return on the money spent.
Cllr Peter Flynn raised the issue at the latest Housing Strategic Policy Committee (SPC).
After the meeting, he explained that Transport Infrastructure Ireland (TII) had CPOd the five properties as a precaution for the northern relief road development.
It was believed that the properties could be impacted, however, the road ultimately only infringed on part of the garden of the home in Atterish he explained.
Cllr Flynn added that a second house in Westport, which was acquired for around €600,000 in 2017 as part of the northern relief road development, is lying derelict with no current plans for development.
The property in Westport that was sold by way of a CPO in 2017 for around €600,000 before it was left to go derelict. Photo: Google Maps.
Cllr Flynn explained that this second property was purchased when the project had gone beyond the final design stage.
"[It] could have been easily occupied once it was acquired. It was never used by the contractor for any purpose after the project was commenced and, along with the other 4 houses bought by way of CPO, has remained vacant despite the road finishing two years ago,” he said and added, "it is not and was never going to be impacted by the new road.”
He criticised the handling of the acquisitions: "Having close to €1m spent on a council house - how do you justify that to a working person who is struggling to rent, or to buy a house for €300,000, €400,000 or €500,000?"
He added: "This will just put people over the edge. It's scandalous, it's no wonder people are angry with politicians."
Today's News in 90 Seconds - September 17th
Cllr Flynn will raise a motion at the next council meeting. He is proposing that the five homes will be sold on the open market, with proceeds going towards the provision of multiple affordable homes in Westport and Castlebar.
Cllr Ger Deere has also raised the issue of these vacant properties, as three of them are within the Castlebar municipal district area. He questioned the decision to CPO the homes to begin with.
He explained in an interview in June that the properties were acquired back from TII by Mayo County Council, and urged them to restore the houses back to a livable state in order to meet the area's housing needs.
One of them, he said, had previously operated as a B&B with a large number of bedrooms.
He said it was unacceptable for such properties to sit idle while families in the area were being sent to shelters across the county.
This article has been funded by the Local Democracy Reporting Scheme.