Demand Outweighs Supply: Significant Interest in 500 New Affordable Houses

The Irish Times reports that the County Council of south Dublin has a plan to build 500 new affordable homes. This is the first time a plan has been put in place to build affordable housing in south Dublin for well over a decade. The houses are planned to cost roughly €300,000. Therefore, for first time buyers, in order to purchase, the home buyers would have to place a down payment of €30,000. However, the home buyers could also benefit from the Help to Buy Scheme. Since the home buyers are purchasing affordable housing that is less than 500,000 euro, the first time buyers could receive a tax rebate of 5% of the 300k if the home buyers take out a mortgage of at least 70% of the home’s price. This €15,000 rebate could be very beneficial to most first time home buyers. In addition, the Irish Times predicted that the affordable homes will be 40% less than market price, a significant savings.  

As reported by the Irish times, the homes will be available in three locations. The first time home buyers could purchase these affordable houses in either Rathcoole, Clonburris Strategic Development Zone, or Killinarden, Tallaght. Killinarden, Tallaght is set to be the location of the majority of the affordable housing.     

While the affordable housing plan seems to be a step in the right direction, the demand still vastly outweighs the supply. Two thousand plus first time buyers in Ireland have shown interest in the affordable housing that is set to be complete in 2021. Due to the shortage, it is reported that the Department of Housing has a “scheme of priority.” The scheme will determine which eligible buyers get to purchase the homes. 

First in line will be residents who have lived in the south Dublin council area for a year or more. If houses were to still remain after the south Dublin residents’ demands were met, citizens of Ireland who have a child in the education system or people who have a job in the south Dublin area would follow. In addition, to be eligible, the Irish Times predicts the income requirement would be individuals or joint couples who make less than 50k and 75k, respectably. However, these numbers are not yet fact, as Eoghan Murphy, the Minister of Housing, stated the scheme is still in the drafting phase. It will be interesting to see the final scheme set in place by the Council and if more houses are planned to be created in the near future in order to suit the housing demand.

https://www.irishtimes.com/news/social-affairs/over-2-000-buyers-bid-for-first-affordable-homes-planned-for-south-dublin-in-years-1.4175557

 

 

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