This is what you get when you only rely on the private sector for housing.
Should start seizing real estate/housing assets from international “businessmen” that have a surplus of owned houses in ireland. A limit needs to be set
This is fucking ridiculous.
Another member of this sub asked a legitimate question on another post yesterday as they couldn’t understand where all of the money was going from taxes we, Irish residents and citizens pay, and multinationals pay.
This is a prime example of the fiscal mismanagement governments of this country have presided over for the last number of decades.
This is our hard earned money they are squandering. Anyone who pays taxes in this country (especially those that work) should be utterly livid about this, and countless other examples of this government pissing money down the drain.
Look at it this way. For €450m, the government could probably build in excess of 1200 social housing properties (this is a very conservative number, even in today’s materials market), that they would own and could charge rent on to social housing tenants, recouping some of the cost of the investment over the years.
It is baffling how anyone in government with half a brain could decide time, and time again, that pumping all of this cash into leasing houses from developers for a period of time, getting no value in the end, is a better idea than building.
Wasn’t there similar deals recently where the government actually also supplied the land to developers for this housing to be built on? Then, they pay them and extortionate amount to lease the housing for 20 years, after which the housing goes back to the developers to do with as they please.
If someone approached Hollywood execs with a script similar to this they’d be laughed out of the office as the story would be too unbelievable.
They couldn’t give a fuck. The arse will fall out of the country when the money runs out and the historians will wonder why the people just accepted it. It’s all in plain view.
A new €450 million state fund has been launched to lease 1,000 new-build homes for social housing, a practice which Taoiseach Micheál Martin has committed to phasing out.
The move comes as the government is faced with potentially missing social housing targets in the coming years.
Last week, the Housing Agency said in a plea issued to developers and prop erty investors that the state needed to “expedite additional permanent social housing” between now and 2025 through a new “targeted leasing initiative”.
The tender has come soon after a report by EY, the consulting firm, said the gov ernment would miss its overall housing targets in 2023 and 2024. The missed tar gets are expected to effect the delivery of social housing because the government sources a large amount of its stock from private developers.
The government’s Housing for All plan has committed to delivering an average of 9,500 new-builds per year up to 2030. At the end of March 2022, there were 8,776 social homes under construction and an additional 11,551 are at design and tender stage.
Last Friday, data published by the Department of Housing showed the overall number of new homes commenced in June 2022 was 2,060, 30 per cent below the level recorded during the same month in 2021.
Despite the dip in June, over the past year, 29,343 new homes have been start ed, which is 7.6 per cent higher than the previous 12-month period.
A new tender document issued by the Housing Agency said the state was now looking for 1,000 homes to lease in or der to “facilitate and expedite additional permanent social housing
Property developers and investors have been told they can submit “a min imum of 20 properties and a maximum of 150 properties in any one proposal” for lease. The Housing Agency added that it was predominantly looking to lease new-build homes in Dublin, but would
review proposals outside the capital.
It would also lean towards proposals submitted by property investors that contained “one-bedroom properties across a number of developments” and submissions that included properties due to be delivered in 2022 and 2023.
The document said the state would commit to leasing the 1,000 new-build homes from property investors over 25 or 30 years at 80 to 85 per cent of mar ket rent. In Dublin, this would equate to roughly €1,600 a month. On average, it will cost €450,000 to lease each of the 1,000 homes over the 25 years.
If a home is leased to the state over a 25-year tenure, the property investor would retain full ownership. Howev er, the tender document said it was the state’s intention to “strive to deliver better value for money for the state than exist ing standard leasing”.
The Housing Agency said it would agree to lease the homes over 30 years if a clause could be included in the contract that would allow the state to buy the property at the end of the period at a slightly reduced market rate to be agreed before the lease commenced.
Eurostat, a European Commission agency, has warned the Irish state against leasing properties for social housing.
The body, which monitors how gov ernment finance statistics are recorded, said the deals provided no “substantial economic benefits” to councils and sig nificantly benefited property investors who “enjoy most of the rewards”, with the local authority ultimately owning no asset at the end of the deal.
Last year, the Taoiseach said the state should not be leasing homes and out lined that the provision of social housing through this method would be phased out in the lifetime of this government. However, leasing is being used by local authorities and state agencies to boost social housing delivery in the short term. Dublin City Council has moved to frontload its delivery of social homes through leasing in 2022.
The local authority has been set a target by the Department of Housing to lease 480 homes for social housing on a long term basis this year, but it has a pipeline of 662 homes to lease for 2022, which is 37 per cent ahead of target.
And probably not even Irish people getting these houses.
It’s just naked, unashamed corruption because they know there will be no consequences legally and even among the electorate for vast swathes of the country (anyone who votes FFG needs to remember they are actively endorsing this behaviour).
They know there is no benefit, the fucking European Commission has flat out come out and said the same repeatedly, but at the end of the day it makes their friends in development get richer which, especially in light of the housing disaster not just worsening but now at the point that I expect it to likely cause serious civil unrest (and the rise of far right populism we have avoided to now) sooner rather than later, had proven to actually be all they care about at all.
It looks like this is over 30 years, which comes to €15,000 per unit per year or €1,250 per unit per month.
This alone should be the type of thing to risk bringing down a government, but fuck all will happen and there’s no guarantee they’ll even get voted out at the next GE. I’d be speechless if it weren’t to entirely expected at this point.
I love how FF/FG always like to portray themselves as the responsible adults in the room, talking about the opposition’s fairytale economics while at the same time pissing our tax money up against the wall. If you pay tax in this country you should be furious about how it’s wasted by these chancers.
No wonder the rent here is shite. Yalls government is spreading the cash like its cheap butter.
Would never happen if we had direct democracy.
This is literally a runaway train of expenditure renting houses and hotels to house people. It’s gathering speed and it’s only going to end in catastrophe.
Kickbacks and political donations from those developers make it all possible… 450,000,000 / 1000 is 450k per house.
I know a few builders who would take free land and 450k and build you a house >.> a real forever house.
Nice, so my taxes are spent on bidding against me and making my rent even higher.
Totally makes sense. Good job Ireland!
At what point does it become criminal to siphon off public money to private interests on such unfavourable terms?
I would say its just fucking crazy. But then I wonder who in government has a stake in the social housing being paid for? Crazy like a fox!
The FGFF Magic Money Tree is much more sustainable than the SF Magic Money Tree, or something
The manner in which they rent these units is by paying more than what working people can afford for them.
Your own taxes are being used against you.
It’s so obvious that the current government have personal investments with these private funds, why isn’t anyone with public prominence holding them to account?
Sinn Fein and PBP try to but just get drowned out by people calling them the RA or dole merchants, every reporter and interviewer just throws them soft questions or let’s them completely deflect and ignore the harder questions.
Feels hopeless.
I’m so tired
They could build a thousand for that. More maybe.
We’ll Never Forget
They’re either spectacularly retarded or spectacularly corrupt.
Even taking the ludicrously high building costs developers claim it costs to build a house lately, surely the government could manage it cheaper than 450k each.
Hell, even if each house cost more, it would make more sense to build them instead of leasing them, considering the government would own the asset and be collecting rent
If you’re between 18 & 35 you’ll more than likely never own a house in Ireland.
Ireland 2022 – don’t bother your hole working or having any sort of ambition, it will all be grand and paid for by someone else.
Shame they didn’t have a shit ton of nama houses they sold for peanuts to investment funds…..
This is madness. I have fought the urge for a while but I’ll be emailing all my local TDs tomorrow. It’s beyond belief at this point.
I built in my parents side garden (very fortunate) outside of cost of land it cost me 340k to build a pretty high spec 100m2 home in 2021. 40k of that went to Irish water, ESB and my local council. I also paid vat on all this I’m assuming government would do this vat free?? So another 30k.
I didn’t have the luxury of buying power that Gov would have but they should be able to build homes for 270-300k on state land or even buying private land and still deliver for under 450k.
Why in the name of God can they not build social housing on state land and retain ownership. It ticks all the boxes.
This is so fucking depressing. What idiot came up with this scheme and why hasn’t it been stopped. Just accept you aren’t going to hit your target and buy or build your own stock. They’ll spend 450k on EACH house for 30 years. Then in 30 years’ time, when these houses are work a million (or 2 million), they will revert back to the developer.
This sort of bullshit might have been necessary I a really short term crisis. But after that they should have changed the law to force them to sell to the government and maybe given them maintenance contracts.
The sad thing about this is that it’s feasible for the state to become a developer but in Ireland it would just become yet another gravey train with massive cost overruns. This is why the leaders of both parties and county councils should be gone
Unbelievable. Half a billion gone like that with absolutely nothing to show for it at the end of the day. I wouldn’t even mind if it was on buying or building social housing, but leasing ffs. I’m actually livid reading about this. Enough is enough.
32 comments
Not sustainable
This is what you get when you only rely on the private sector for housing.
Should start seizing real estate/housing assets from international “businessmen” that have a surplus of owned houses in ireland. A limit needs to be set
This is fucking ridiculous.
Another member of this sub asked a legitimate question on another post yesterday as they couldn’t understand where all of the money was going from taxes we, Irish residents and citizens pay, and multinationals pay.
This is a prime example of the fiscal mismanagement governments of this country have presided over for the last number of decades.
This is our hard earned money they are squandering. Anyone who pays taxes in this country (especially those that work) should be utterly livid about this, and countless other examples of this government pissing money down the drain.
Look at it this way. For €450m, the government could probably build in excess of 1200 social housing properties (this is a very conservative number, even in today’s materials market), that they would own and could charge rent on to social housing tenants, recouping some of the cost of the investment over the years.
It is baffling how anyone in government with half a brain could decide time, and time again, that pumping all of this cash into leasing houses from developers for a period of time, getting no value in the end, is a better idea than building.
Wasn’t there similar deals recently where the government actually also supplied the land to developers for this housing to be built on? Then, they pay them and extortionate amount to lease the housing for 20 years, after which the housing goes back to the developers to do with as they please.
If someone approached Hollywood execs with a script similar to this they’d be laughed out of the office as the story would be too unbelievable.
They couldn’t give a fuck. The arse will fall out of the country when the money runs out and the historians will wonder why the people just accepted it. It’s all in plain view.
A new €450 million state fund has been launched to lease 1,000 new-build homes for social housing, a practice which Taoiseach Micheál Martin has committed to phasing out.
The move comes as the government is faced with potentially missing social housing targets in the coming years.
Last week, the Housing Agency said in a plea issued to developers and prop erty investors that the state needed to “expedite additional permanent social housing” between now and 2025 through a new “targeted leasing initiative”.
The tender has come soon after a report by EY, the consulting firm, said the gov ernment would miss its overall housing targets in 2023 and 2024. The missed tar gets are expected to effect the delivery of social housing because the government sources a large amount of its stock from private developers.
The government’s Housing for All plan has committed to delivering an average of 9,500 new-builds per year up to 2030. At the end of March 2022, there were 8,776 social homes under construction and an additional 11,551 are at design and tender stage.
Last Friday, data published by the Department of Housing showed the overall number of new homes commenced in June 2022 was 2,060, 30 per cent below the level recorded during the same month in 2021.
Despite the dip in June, over the past year, 29,343 new homes have been start ed, which is 7.6 per cent higher than the previous 12-month period.
A new tender document issued by the Housing Agency said the state was now looking for 1,000 homes to lease in or der to “facilitate and expedite additional permanent social housing
Property developers and investors have been told they can submit “a min imum of 20 properties and a maximum of 150 properties in any one proposal” for lease. The Housing Agency added that it was predominantly looking to lease new-build homes in Dublin, but would
review proposals outside the capital.
It would also lean towards proposals submitted by property investors that contained “one-bedroom properties across a number of developments” and submissions that included properties due to be delivered in 2022 and 2023.
The document said the state would commit to leasing the 1,000 new-build homes from property investors over 25 or 30 years at 80 to 85 per cent of mar ket rent. In Dublin, this would equate to roughly €1,600 a month. On average, it will cost €450,000 to lease each of the 1,000 homes over the 25 years.
If a home is leased to the state over a 25-year tenure, the property investor would retain full ownership. Howev er, the tender document said it was the state’s intention to “strive to deliver better value for money for the state than exist ing standard leasing”.
The Housing Agency said it would agree to lease the homes over 30 years if a clause could be included in the contract that would allow the state to buy the property at the end of the period at a slightly reduced market rate to be agreed before the lease commenced.
Eurostat, a European Commission agency, has warned the Irish state against leasing properties for social housing.
The body, which monitors how gov ernment finance statistics are recorded, said the deals provided no “substantial economic benefits” to councils and sig nificantly benefited property investors who “enjoy most of the rewards”, with the local authority ultimately owning no asset at the end of the deal.
Last year, the Taoiseach said the state should not be leasing homes and out lined that the provision of social housing through this method would be phased out in the lifetime of this government. However, leasing is being used by local authorities and state agencies to boost social housing delivery in the short term. Dublin City Council has moved to frontload its delivery of social homes through leasing in 2022.
The local authority has been set a target by the Department of Housing to lease 480 homes for social housing on a long term basis this year, but it has a pipeline of 662 homes to lease for 2022, which is 37 per cent ahead of target.
And probably not even Irish people getting these houses.
It’s just naked, unashamed corruption because they know there will be no consequences legally and even among the electorate for vast swathes of the country (anyone who votes FFG needs to remember they are actively endorsing this behaviour).
They know there is no benefit, the fucking European Commission has flat out come out and said the same repeatedly, but at the end of the day it makes their friends in development get richer which, especially in light of the housing disaster not just worsening but now at the point that I expect it to likely cause serious civil unrest (and the rise of far right populism we have avoided to now) sooner rather than later, had proven to actually be all they care about at all.
It looks like this is over 30 years, which comes to €15,000 per unit per year or €1,250 per unit per month.
This alone should be the type of thing to risk bringing down a government, but fuck all will happen and there’s no guarantee they’ll even get voted out at the next GE. I’d be speechless if it weren’t to entirely expected at this point.
I love how FF/FG always like to portray themselves as the responsible adults in the room, talking about the opposition’s fairytale economics while at the same time pissing our tax money up against the wall. If you pay tax in this country you should be furious about how it’s wasted by these chancers.
No wonder the rent here is shite. Yalls government is spreading the cash like its cheap butter.
Would never happen if we had direct democracy.
This is literally a runaway train of expenditure renting houses and hotels to house people. It’s gathering speed and it’s only going to end in catastrophe.
Kickbacks and political donations from those developers make it all possible… 450,000,000 / 1000 is 450k per house.
I know a few builders who would take free land and 450k and build you a house >.> a real forever house.
Nice, so my taxes are spent on bidding against me and making my rent even higher.
Totally makes sense. Good job Ireland!
At what point does it become criminal to siphon off public money to private interests on such unfavourable terms?
I would say its just fucking crazy. But then I wonder who in government has a stake in the social housing being paid for? Crazy like a fox!
The FGFF Magic Money Tree is much more sustainable than the SF Magic Money Tree, or something
The manner in which they rent these units is by paying more than what working people can afford for them.
Your own taxes are being used against you.
It’s so obvious that the current government have personal investments with these private funds, why isn’t anyone with public prominence holding them to account?
Sinn Fein and PBP try to but just get drowned out by people calling them the RA or dole merchants, every reporter and interviewer just throws them soft questions or let’s them completely deflect and ignore the harder questions.
Feels hopeless.
I’m so tired
They could build a thousand for that. More maybe.
We’ll Never Forget
They’re either spectacularly retarded or spectacularly corrupt.
Even taking the ludicrously high building costs developers claim it costs to build a house lately, surely the government could manage it cheaper than 450k each.
Hell, even if each house cost more, it would make more sense to build them instead of leasing them, considering the government would own the asset and be collecting rent
If you’re between 18 & 35 you’ll more than likely never own a house in Ireland.
Ireland 2022 – don’t bother your hole working or having any sort of ambition, it will all be grand and paid for by someone else.
Shame they didn’t have a shit ton of nama houses they sold for peanuts to investment funds…..
This is madness. I have fought the urge for a while but I’ll be emailing all my local TDs tomorrow. It’s beyond belief at this point.
I built in my parents side garden (very fortunate) outside of cost of land it cost me 340k to build a pretty high spec 100m2 home in 2021. 40k of that went to Irish water, ESB and my local council. I also paid vat on all this I’m assuming government would do this vat free?? So another 30k.
I didn’t have the luxury of buying power that Gov would have but they should be able to build homes for 270-300k on state land or even buying private land and still deliver for under 450k.
Why in the name of God can they not build social housing on state land and retain ownership. It ticks all the boxes.
This is so fucking depressing. What idiot came up with this scheme and why hasn’t it been stopped. Just accept you aren’t going to hit your target and buy or build your own stock. They’ll spend 450k on EACH house for 30 years. Then in 30 years’ time, when these houses are work a million (or 2 million), they will revert back to the developer.
This sort of bullshit might have been necessary I a really short term crisis. But after that they should have changed the law to force them to sell to the government and maybe given them maintenance contracts.
The sad thing about this is that it’s feasible for the state to become a developer but in Ireland it would just become yet another gravey train with massive cost overruns. This is why the leaders of both parties and county councils should be gone
Unbelievable. Half a billion gone like that with absolutely nothing to show for it at the end of the day. I wouldn’t even mind if it was on buying or building social housing, but leasing ffs. I’m actually livid reading about this. Enough is enough.