TD for Dublin Mid-West Mark Ward has said South Dublin County Council’s (SDCC) implementation of Government policy of providing 25-year leases instead of traditional social housing, is short sighted and not cost effective. In response to a parliamentary question, Teachta Ward received it stated that over the lifetime of the lease it will cost on average €442,000 per house. So far SDCC have leased at least 80 of these homes with an estimated cost of €35 million
Teachta Ward said: “SDCC are implementing Government policy of providing 25-year leases instead of traditional social housing. “Figures I received today tell me that SDCC are spending on average €442,000 per house over the lifetime of the lease. “After the lease the house returns to the landlord or investment firm. “So effectively SDCC are paying a mortgage on a house and after 25 years they have nothing to show for it.
“Also, after 25 years SDCC are still obliged to secure another tenancy for their tenant. This scheme in addition too not being cost effective is very short sighted. “My understanding is that so far SDCC have leased at least 80 homes on this scheme which will cost €35 million. That’s €35 million without having an asset at the end of it. “The Council are also responsible for the maintenance and tenant management of the property, which adds additional costs. “This is the ideology that has created the housing crisis that we find ourselves in today.
“This Government have learned nothing from the past. They continue to rely on the private market to provide solutions to public housing. “This strategy of investment firms buying up homes and then leasing them back to the Council is also another barrier stopping first time buyers obtaining a home for their family. “It’s absurd and wrong that a lot of the homes that SDCC advertised were originally Council houses to begin with. “Effectively SDCC are paying over the odds to lease a home that they once owned and sold at a discount. This is just bonkers.