Intricacies of affordable housing programme prove challenging for Wexford councillors

By Simon Bourke, Wexford People

A housing programme designed to get first-time buyers on the property ladder will provide applicants with up to €100,000 of the asking price. Under the Local Authority Affordable Purchase Scheme (LAAPS) Wexford County Council can provide homes for sale below open market value.

Aimed at buyers who aren’t eligible for social housing but also can’t afford to purchase in the private market, the LAAPS provides a percentage of the asking price and enables those previously locked out of the market to buy their first home. At the February meeting of the New Ross Municipal District (NRMD) Claude Clancy of Wexford County Council's (WCC) housing department provided further details.

“Preparing people to get ready to apply for these houses is the challenge,” he said. “You need at least 10 pc of the cost to be eligible, and we can provide up to €100,000 to bridge the gap. If you want to purchase a house for €350,000, and you can get a mortgage of €220,000, the help-to-buy scheme can give you an additional €30,000. Your own savings (€25,000) will bring you to €275,000, and the last €75,000 comes from us.

"You are buying your house, we’re just helping you buy it. We’re an invisible partner in this.”

However, as part of the scheme, the State retains an equity share proportional to the discount provided. Applicants subsequently have 40 years to pay back this money.

“You only pay back the money on your mortgage costs at the beginning, when you decide to pay the back the money you owe to us is your decision,” added Mr Clancy.

Understanding the intricacies of the scheme proved challenging for councillors.

“We need to host an information night in New Ross to explain this,” said Councillor Michael Sheehan. “It’s difficult for us to keep track of them, it must be almost impossible for the public; most people don’t know where to go or where to start with these schemes.”

It’s difficult for us to keep track of them, it must be almost impossible for the public

One major stumbling block, according to Cllr Sheehan, was that only certain houses can be purchased under LAAPS, namely, houses in council-approved developments.

“See, that’s the difficulty,” he said. “Applicants shouldn’t be tied to a local authority scheme. My concern is that the amount of properties available may not make it valid.”

Currently, there are no eligible housing developments in New Ross; however, Mr Clancy confirmed 35 of the units in the new Castemoyle scheme will be open for LAAPS applicants.

“The expressions of interest for New Ross weren’t the strongest,” he admitted. "I've had engagement with a number of developers on sites that didn’t come to fruition.”

Cllr Bridín Murphy was one of many struggling with the facts and figures of the scheme.

“I did well in maths at my Leaving Cert, but I’m finding this a bit complicated and complex,” she said. “You’re throwing figures at us, if someone went into a workshop, they’d say ‘what the hell’.”

“We’ve developed tutorial videos and a handbook,” offered Mr Clancy.

“Is there a maximum threshold?” asked Cllr Murphy.

“You can have too much money, it depends on the purchase price of the property. If you exceed 95 pc of the cost through your own purchasing power, you won’t qualify for the scheme. If you have 90 pc, you’re going to need an equity from us of 10 pc.”

Responding to a query from Cllr Pat Barden regarding the location of eligible housing schemes, Mr Clancy said the focus was on “building in urban environments where there’s enough demand to sustain development”.

Lastly, as someone who has repeatedly discussed the plight of the squeezed middle, Cllr Sheehan requested that anyone refused a place on the social housing list be “automatically redirected” to the council’s LAAPS team.