Sinn Féin spokesperson on Housing Eoin Ó Broin TD has warned that the private sector model for the delivery of homes is ‘broken’. 

His comments come as the Society of Chartered Surveyors of Ireland (SCSI) published a report outlining the real costs of apartment building in the State.

Teachta Ó Broin said:

“The report published this morning highlights once again how the private sector cannot deliver affordable homes for ordinary working people. It also highlights a massive price differential between delivery costs for private homes and tender prices for the council delivery of homes in the city centre. 

“In terms of affordability, even for the lowest price apartment being delivered in the Greater Dublin Area, a household would need to have an income of almost €100,000.

“According to the CSO only 14.5% of households earn over €100,000. The private market will not cater for the majority of households who want to buy an apartment either in the suburbs of Dublin or the city centre.

“The SCSI report also indicates that 76% of the apartment schemes being developed are build to rent. It is not just prospective homeowners who will not be able to afford to live in Dublin. The monthly rent for build to rent apartments referenced in the report are between €1,850 and €2,300 in the suburbs, and €2,200 and €2,600 in the city.

“This unaffordability undermines the government’s compact growth strategy, which aims to increase higher density residential development in our urban centres. If the majority of ordinary workers centres cannot afford to either buy or rent somewhere in the city centre, suburban sprawl will continue.

“The SCSI report also highlights another problem. In recent months it has come to light that Dublin City Council are being charged excessive prices for inner city social housing apartment developments. 

“A report from DCC Housing Manager Brendan Kenny quoted construction costs on these developments of €340,000 per apartment. Yet the SCSI report has construction costs of €240,000 and less on similar private sector developments.

“Why are developers and contractors charging Dublin City Council €100,000 more than they charge themselves for similar types of developments.

“The Ministers report needs to look at the wider issue of unaffordability in the private sector and examine whether certain developers are gouging Dublin City Council on social housing tender prices.”