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€20m bid to salvage the 'ghost estates' under fire - National News, Frontpage - Independent.ie
"THE Government is to pump 20m into a new scheme so that some of the 50,000 vacant houses and apartments in 'ghost estates' can be leased out to those on housing waiting lists, the Irish Independent has learned.
Under the scheme, which is being finalised by the Department of the Environment, local authorities would enter into long-term leasing arrangements of between 10 and 20 years on unsold, vacant and unfinished houses or apartments.
But the move has been slammed by the country's largest housing association, Respond, which last night said it was a return to the council 'ghettos' of the past which did not work.
It also accused the Government of "bailing out developers", saying it should focus on delivering new social houses to generate employment and tax from workers.
Official figures show there are currently some 56,000 households on housing waiting lists, representing a 100pc increase over the last 10 years.
But Respond says the figure is far higher, with up to 78,000 families waiting for a home.
"Effectively, this is just bailing out developers," a spokeswoman said. "It's not creating employment, and generally these estates are based outside cities with poor services, no schools or creches.
Ghettos
"This will just create ghettos. It's back to the 1980s and we have seen from Ballymun and Moyross that it just doesn't work. In five or 10 years, the Government might decide to buy these houses at a time when things probably will have improved and the Government will be forced to pay more for them."
The 20m is the estimated cost of the leasing of 2,000 units. The rents paid by the tenants will be for maintenance and upkeep of the properties.
Last night, junior housing minister Michael Finneran said there were over 40,000 vacant properties which could be "offloaded" at "very good value for the State".
"This will obviously help in meeting housing needs, which rose by over 30pc between 2005 and 2008, as well as having a positive impact on reducing the size of the overhang of unsold housing on the market," he said.
"We might never have this opportunity again and it's a good time to address the very serious waiting lists that we have. This opportunity which presents itself is a win-win scenario for all."
Good value
Rejecting suggestions that the scheme could be perceived as a short-term fix by Fianna Fail to get builders out of trouble, Mr Finneran insisted that the State expected to get very good value for accommodation in the current market.
In its pre-budget submission last year, the Simon Communities of Ireland argued that 15pc of private dwellings were unoccupied and could be bought up so that a huge dent is put in the housing waiting lists.
However, the scheme favoured by the Government will see vacant properties leased, then handed back to the developer.
Like current State housing schemes, a local authority or voluntary body will act as the landlord.
The differential rents scheme will apply as normal, with local authorities accessing Government funding of 20m to make up the balance of tenants' rent. Tenants will not be allowed to purchase the homes.
Documents obtained under the Freedom of Information Act following the October emergency Budget revealed how the Construction Industry Federation (CIF) lobbied for a scheme.
In December, construction chiefs called for a 200m bailout from the State, claiming that residential housing output was down 50pc in under two years."
How does Tom do it? Does he have a big folder full of Fianna Fail secrets?
P.
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Originally Posted by jmcc
