Opposition politicians are raising concerns that the rule of paying developers up to €120,000 per apartment will not bring prices down

Opposition politicians have expressed concerns that a scheme that pays developers up to €120,000 per apartment will not lower prices.

High government ministers signed the Crói Contaithe (Cities) Fund this week, which sees taxpayers foot the bill of up to €120,000 per apartment.

The fund aims to activate building permits for homes that would otherwise not be built by bridging the gap between construction costs and market value.

However, opposition politicians lashed out at the fund, details of which were first published in the Irish Independent.

“We all know the cost of housing is a big problem, but the cost of land and the tax costs it entails are a major factor in the lack of affordability for both buyers and renters,” said Senator Rebecca Moynihan, Labor housing spokesperson.

“It takes massive state intervention to build houses directly. We need to simplify the process for local authorities and give them the funds they need to build homes.”

Social Democrat TD Cian O’Callaghan said it was “quirky and extraordinary” that the state “intends to give developers up to €120,000 per apartment – without securing any obvious benefit to the treasury”.

“The state is bailing out developers, but they will still seek full market value when the homes sell. On what planet does that make sense?

“When developers are in financial difficulties and cannot complete construction projects, why doesn’t the state take over these construction projects and ensure that the supply of social, affordable and low-cost housing is increased,” he said.

Sinn Féin TD Eoin Ó Broin called the fund “crazy”.

“It seems that the proposal is to give large developers of high-density developments in our cities €500 million in taxpayer money with no rebate for the buyer and something close to affordable for the working population,” he said.

“Without home prices and private sector development costs spiraling out of control, such a system would be a scandalous use of taxpayers’ money.”

https://www.independent.ie/news/opposition-politicians-raise-concerns-that-scheme-to-pay-developers-up-to-120000-per-apartment-will-not-reduce-prices-41622214.html Opposition politicians are raising concerns that the rule of paying developers up to €120,000 per apartment will not bring prices down

Fry Electronics Team

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