A three-bedroom house, built in 2018 as part of an affordable housing scheme for low- and middle-income workers in north Dublin, is for sale on the private market for increments of nearly 50 per cent.
The housing cooperative Ó The Cualann Cohousing Consortium has built ownership of 49 homes in Baile na Laochra in Ballymun at prices about 30 percent below market value.
At the time, this was the only open affordable housing scheme in the country, and then-Housing Secretary Eugan Murphy said the property was being used as a model for the development of a new state-subsidized housing scheme.
A three-bedroom house in Baile na Laochra, which Ó Cualann sold for 170,000 euros three years ago, has been put up in recent days with an indicative price of 250,000 euros. Unlike original buyers, potential buyers will not have to comply with any eligibility criteria for affordable housing.
To be eligible to purchase Ó Cualann homes in 2017 and 2018, single buyers had to have an income of less than 59,000 euros and a combined income of less than 79,000 euros for married couples. A 10 percent deposit is required, as is a mortgage approval for the remaining amount. Buyers also had to become members of the cooperative.
Homeowners who sell within 10 years are expected to pay a redemption fee to the co-op related to the discount to the purchase price.
The three-bedroom home now on the market will be the first home sold privately since the property was built. In the case of this home, the clawback is understood to be in the region of €44,000, which Clawback will use to reimburse the cost of the site to Dublin City Council.
The council sold the land to the cooperative for €1,000 per plot of land for the house. On the open market, the cost of the same plots of land was up to 30,000 euros. The council also waived a development fee of 86.40 euros per square metre.
Qualan CEO Hugh Brennan said there’s nothing to stop all homes on the property being sold privately.
“It is one of the drawbacks of the scheme. Our preferred method was to resell the homes directly to the co-op, then we could sell them to other eligible homebuyers at reasonable rates.”
However, he added, mortgage lenders were not willing to agree to this restriction on future sales.
The seller of the house could not be reached for comment.
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