Whatever happened to the Affordable Housing scheme

billyhead

Why did the councils put a halt to this? Was it because too many people applied for it to make a quick buck and sell it on or too many people got houses that were not in desperate need of one and the houses were sold to the wrong people.

Peterx

billyhead wrote: »

Why did the councils put a halt to this? Was it because too many people applied for it to make a quick buck and sell it on or too many people got houses that were not in desperate need of one and the houses were sold to the wrong people.

Essentially it fell victim to the boom.

As full price reached monopoly money levels the affordable price rose in tandem.

A 2 bed apartment, unfinished - no floors or kitchen - in Tallaght being offered on the "affordable" house scheme for €280,000 in 2007.

€280,000 was the affordable price...affordable to who?

The income thresholds on the scheme meant you would have had to have had a very good deposit.

Another problem was one of perception - I looked at a couple and was disappointed, but not surprised, to find they were both unfinished (no flooring or kitchen) and where they were finished, it was to a lesser standard then the other apartments in the development. The estate agent basically said you are on the scheme - you will take what you are offered.
The council staff didn't care.

Jet Black

They would have to pay a percentage back to the council if sold within 20 years so many people would not have sold.

Also..

In June 2011, the Minister for Housing and Planning announced the standing down of all affordable housing schemes. While, the legislation underpinning the operation of the various schemes is not being repealed at this stage, the schemes will no longer be active due to the reality of market conditions across the country and the very significant easing of affordability.

L1011

Houses stopped being built full stop meaning the affordable % inherently didn't exist; and additionally councils started taking cash or, even worse, land banks at a notional value in lieu of the affordable houses being built.

newacc2015

Peterx wrote: »

Another problem was one of perception - I looked at a couple and was disappointed, but not surprised, to find they were both unfinished (no flooring or kitchen) and where they were finished, it was to a lesser standard then the other apartments in the development. The estate agent basically said you are on the scheme - you will take what you are offered.
The council staff didn't care.

Maybe in some councils. But in DCC, they were entitled to inspect all the properties to ensure there was no quality difference between the affordable housing and the regular housing. DCC didnt settle for lower quality housing for its affordable scheme.

Gumbo

newacc2015 wrote: »

Maybe in some councils. But in DCC, they were entitled to inspect all the properties to ensure there was no quality difference between the affordable housing and the regular housing. DCC didnt settle for lower quality housing for its affordable scheme.

+1

I was involved in many Part V allocations while working on developments throughout the city. We had to ear mark particular units within the developments, scattered across the site (ie. Your not allowed provide one block and say that's the council block there). They had to be integrated and provided with the same options as the rest of the development.

The council paid us set rates, plus minimal costs etc. The builder lost nothing on the units other than the difference between the build cost plus a little and the full market value.

MarkAnthony

Isn't there still a council mortgage scheme running?

Michael D Not Higgins

MarkAnthony wrote: »

Isn't there still a council mortgage scheme running?

There's the Home Choice Loan scheme which has some strict conditions and doesn't lend as much as it was intended to because of these conditions.

Muahahaha

AFAIK the social part of any new developments only needs to be 10% of all units, down from 20% during the FF era.

riclad

IN theory the council will give any working person a mortgage,
if your income is under x amount,
you have been refused a loan by the bank .
The property is in good condition .
i know someone bought an apartment with a council loan in 2007 .

The affordable housing was ridiculous as a 2bed apartment for 200k was listed as affordable .
Or the council was buying houses for 200k.

See link below
theres an article , new designs low cost house,s cost 20k sterling .
built in the usa .
They look as many house,s in ireland .
They design houses with basic materials that cost 20k to build.
I think any house in reland costs 100 k plus to build ,
if you get a site for free .
A lot of that is tax and vat .


http://www.fastcoexist.com/3056129/this-house-costs-just-20000-but-its-nicer-than-yours

L1011

Those won't meet any standards over here

Michael D Not Higgins

riclad wrote: »

IN theory the council will give any working person a mortgage,
if your income is under x amount,
you have been refused a loan by the bank .
The property is in good condition .
i know someone bought an apartment with a council loan in 2007

Home Choice Loans require a minimum salary (35k for a single person, 45k for a couple)

foxy06

Home choice loans are different to council loans

ja1986

Does anyone know where I can find info online about council loans? Do they do rent to buy or anything like that? Thank you

athtrasna

ja1986 wrote: »

Does anyone know where I can find info online about council loans? Do they do rent to buy or anything like that? Thank you

Nobody does rent to buy any more afaik. You need to contact your council directly to find out about their loan policies as there doesn't seem to be anything standard across the councils

Gumbo

Muahahaha wrote: »

AFAIK the social part of any new developments only needs to be 10% of all units, down from 20% during the FF era.

Spot on. It's currently 10%.