Three council-owned sites have been offered to developers under the condition that affordable homes are built in its place. Dublin City Council who offered up the sites are attempting to tackle the rising prices in Dublin and offer reasonable priced houses, apartments, and duplexes at three different sites. Over 370 homes will be built starting at €116,000 aimed at attracting low and middle-income buyers.
Average house prices in Dublin have grown over 4% in the first couple of months this year outperforming the national average by over 1%. Dublin’s current average house price is €383,000 and many people are having trouble affording homes in the city. Dublin City Council aims to start prices at €267,000 less than the current average which will allow for more diversity within Dublin’s housing market makeup.
The least expensive of the new homes being built are the two Ballymun sites. One Ballymun site will be located on Sillogue Road near Main Street. The other site will be listed on Balbutcher Lane. Options will include a one-bedroom apartment, two-bedroom duplex and house, three-bedroom duplex and house, And a four-bedroom house. The range of all the styles of places mentioned spans from €116,000 to €232,000. The four-bedroom homes even offer a price tag less than the average home price in Dublin.
Prices will be slightly higher at the Ballfermot site located south of Cherry Orchard Hospital. The range of homes at this location will span from €136,000 to €236,000 with the largest offering at this location being a three-bedroom house.
The side to this project that sparks some controversy has to do with how much state funding should be allocated. The state is enticing developers to take on the project by offering funding to accommodate for the low-price offerings. Prioritizing some of the state’s budget to be put towards low income housing in Dublin should be at the top of the list. Despite a wide range of reactions, Councillor, Paul McAuliffe, is very excited for the new development and said, “Many of these people are renting at the moment and are paying huge rents.” He proceeded to discuss how taking out a mortgage on an affordable home would be far more inexpensive in the long run. Paul McAuliffe ended with some positive ramifications for the community by stating, “That money is able to go back into the local economy to support local jobs. So, I think it’s a great idea.”
A problem that may arise is buyers being able to pay off their mortgages. For example, the price tag on homes reflect an initial discount of 20% covered by the council and classified as an equity stake for the buyer. This brings up many problems and could cause a financial stress on the homebuyer who is obligated to pay down the stake over its lifetime. The council could end up not collecting their money back if people were unable to pay-off their loan. Deciding the correct scheme to collect money from the homebuyers will be paramount in the success of these new inexpensive housing developments.