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Abandonment of Cabra cost rental plan must be wake up call for Government

  • Clúid abandons plans for forty cost rental homes in development of 144 homes on Bannow Road, Cabra.
  • Cost rental a significant scheme to support those who do not qualify for social housing and cannot afford to buy – but there are questions about viability with increasing construction costs.
  • Concerns about the design, structure, and affordability of cost rental.
  • Government must provide assurance that construction inflation will not delay or defer cost rental projects.

 

Responding to news that Clúid has been forced to abandon its plan for 40 cost rental units in Cabra, Marie Sherlock TD for Dublin Central has said this must be a wake up call for Government in making sure cost rental schemes are viable.

Deputy Sherlock said:

“This is deeply disappointing news for a community that is crying out for more affordable rents. Across Cabra and communities right across this city and country, there are thousands of workers on low and middle incomes who are struggling in the private rented sector because of exorbitant rents and house prices that will never be within reach.

“While we are very disappointed, we are relieved to hear that at least these forty units will now be social housing as there is enormous demand for social homes in the area. But we are crystal clear, far too many people feel there is no housing response for them if they earn above the social housing thresholds. The average market rent for a two-bedroom apartment is almost €2,700 which people are simply struggling to afford, and that is even if they can find an apartment in the first place.

“While this scheme only had provision for forty cost rental units, I’m very concerned about viability of other cost rental schemes. There are 4,119 planned across the city between 2026-2030, the majority of which will be delivered by AHBs.

“The irony here is that it appears more viable and secure to build social housing as opposed to cost rental. If working people on low and middle incomes are to have any hope of a decent existence, then we need a viable cost rental model. We need a review of the cost rental model to ensure it is a cost recovery scheme based on construction and maintenance, rather than tying the scheme to discounts based on the market rate. For many individuals, particularly single individuals, cost rental is also not viable and that is a travesty.

“We need to see a comprehensive response from Government. We understand that the financial design of cost rental is not sustainable as loans have to be repaid on the fortieth year, while the AHB has to commit to covering costs for a 50 year designation.

“I have also serious concern about the impact of rising cost of construction, particularly with the ongoing fuel crisis and pent-up demand which would have a serious impact on the viability of projects about to start or being planned now. Government needs to respond and provide assurance that these building projects will be funded. Cabra is a wake up call of what may lie ahead. We desperately need a viable and affordable rental model across our communities but Government must properly fund and support them.”