Taxpayers may have to pay €2.8 billion for defective Celtic Tiger homes

The housing minister announced today that taxpayers would have to bear up to 2.8 billion euros for defective apartments.

The Working Group on Defective Celtic Tiger Era Housing is due to present its final report to Darragh O’Brien after its final meeting today.

He is told the state may face a bill of between £1.7 billion and £2.8 billion.

However, the costs can also be covered by cheap long-term loans or government grants to homeowner management companies Irish Independent understands.

The decision on the type of rehabilitation rests with the government. Homeowners have emphasized that any redress or compensation scheme proposed by the government through tax credits, means-tested grants or soft loans should include a retrospective element.

Tenants usually have to accept defects in poor apartments, since 60% of the properties are rented out.

Up to 100,000 homes across the country are believed to be affected by defects, with 90,000 homes experiencing fire safety issues.

44,000 homes face “moral hazard” with repairs being delayed until a refurbishment program is introduced by the government.

The average repair cost per household is €27,500 and only 12 percent of households have completed the work, while more than half have not even started the repairs.

The government will make a decision on what type of legal remedies to introduce after receiving the report of the working group. However, it is likely that the state will introduce a mica-pyrite-type scheme after introducing a sweeping redress scheme for homeowners affected by mica amid fears of political backlash.

Activists are also concerned that support is included in the September budget, but sources were concerned that the working group’s report comes too late in the negotiation process to include financial aid.

Last week, Tánaiste Leo Varadkar said there must be “government support” for people who bought apartments in buildings with deficiencies through no fault of their own.

Mr Varadkar said it was an important issue with which he was “very familiar” in his own constituency and which the government needed to respond to, as it has for homeowners affected by pyrite and mica.

https://www.independent.ie/irish-news/taxpayers-may-have-to-foot-bill-of-28bn-for-defective-celtic-tiger-apartments-41859281.html Taxpayers may have to pay €2.8 billion for defective Celtic Tiger homes

Fry Electronics Team

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