‘The whole system is bonkers’: Councillor slams €300,000 ‘affordable’ houses in Mayo
35 affordable housing units are under consideration under the Local Authority Affordable Purchase Scheme (LAAPS), which, if approved, would mark the first large-scale project of its kind in Mayo.
While the announcement has been broadly welcomed, some representatives have questioned whether the units can genuinely be considered affordable.
The units on offer will range from two-bedroom mid-terrace homes to three-bedroom semi-detached houses and are priced between €260,000 and €300,000.
At the December meeting of the Castlebar Municipal District, Cllr Harry Barrett was the first to raise concerns over the cost.
"A young couple in this town who want to aspire to a €300,000 home, which is probably going to be the three-bedroom semi-detached, would need a €30,000 deposit,
"If they are first-time buyers, their combined income would need to be around €65,000, and if [they're] not first-time buyers, you're talking a €77,000 combined income," he explained.
Cllr Barrett added, "I think we have to be very careful of the price point in this town. €300,000 for a three-bedroom semi-detached [home] is far too expensive."
He also highlighted that a single-person household would need to be earning over €65,000, adding, "There are very few incomes around this town" that reach that level.
While welcoming the development as a step forward, Cllr Barrett noted that high rents are preventing many young couples from saving for a deposit.
He said many young couples are spending between €1,200 and €1,400 on rent.
"Where are they going to get €30,000? I don't know. The price points as advertised are too expensive and need to be looked at again."
Cllr Donna Sheridan said the lower-priced units could be considered affordable. However, she acknowledged this was not an ideal situation and stated that far more affordable housing is needed across the district.
"If they are coming in at €250,000, a 10pc deposit leaves the joint income of the household at €56,250,
"That is the price of the joint income on the lower end. I am giving the alternative for where price points are – €56,250 between a couple, and €26,416 is the yearly minimum wage for a full-time worker," she said.
Cllr Sheridan also noted that Help to Buy could cover the deposit for eligible buyers.
Head of the Castlebar Municipal District, David Mellett, explained that the 35-unit development under discussion is a private initiative being offered as affordable housing through an application to the LAAPS.
Mr Mellett explained that the price of the units is based on the all-in cost of the building under the scheme.
"There is a discount subsidy for the all-in price. In this case, there is, at most, a €75,000 subsidy towards affordable housing," he explained.
Under the scheme, the council takes an equity share in each home, which buyers can later buy back. Alternatively, if a house is sold within the scheme timeframe, the council receives a proportion of the sale price.
"The prices being spoken about are based on the all-in price, not one that we have set," he explained," Mr Mellett said.
Cllr Barrett remained critical of the scheme and claimed the "whole system is bonkers".
"The houses are not really affordable. A €300,000 unit is technically €375,000 - and we take a stake in it as well," he said.
"So, the couple have to raise their deposit, have an income that is the right level for a mortgage, and they still don't have 100pc ownership of it,
"The whole system is bonkers. An absolutely bonkers scheme by a Government that has lost control of housing. To me, that is anything but affordable – especially if there is a single owner in the house."
During the meeting, Cllr Barrett also spoke about the broader need for affordable housing and the need for greater ambition to tackle it.
He questioned the phased approach to a new 200-unit development in Knockthomas, Castlebar.
"We have a 200-house development planned, and I believe it is going to be in three phases – why can't it be built in a single phase?" Cllr Barrett asked.
He referenced the 116 houses that were built along McHale Road in 1935 in a single phase, "If we have ambition, that should also be built in a single phase."
Cllr Barrett highlighted the human impact of project delays, "I am dealing with families living in dilapidated accommodation. Families who are getting notice to quit - it's a disaster."
The independent councillor has been outspoken on the housing crisis. In May, he proposed a motion to declare a housing emergency in Castlebar, which was accepted unanimously.
Cllr Barrett has stated that accelerating the Knockthomas development would make a real difference for families stuck in emergency accommodation.
As of the end of November, there were 167 adults and 58 children in private emergency accommodation across Mayo.
This article has been funded by the Local Democracy Reporting Scheme.