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With the occupation of Apollo House came loud calls for Nama to step up and focus its attention on solving Ireland’s current (and growing) housing and homelessness crisis. In the final installment of a special investigation, TheJournal.ie visits some of the most affected areas to examine if the so-called bad bank has been playing its part in providing social housing.
SARAH* HAD GIVEN up on getting housed through Cork County Council when the letter came that an apartment was available for her family to move into.
She had been on the waiting list for eight years with nothing coming up for her and her two young children.
One day, “out of the blue”, she was told that a three-bedroom apartment had become available at the Woodfield estate in Blarney.
The apartment was available through Túath Housing – one of the largest Approved Housing Bodies (AHBs) in the country.
AHBs are licensed to provide and manage social housing. Their use has grown significantly in recent years as local councils significantly cut back on building social housing in the years following the economic collapse.
“From getting the letter, I had an interview and was in the house within the two weeks,” Sarah tells TheJournal.ie from her home in Blarney.
It’s a really nice place, I feel completely at home here.
Túath acquired the 12 new apartments in the estate of Woodfield in Blarney through a leasing arrangement with Nama.
Nama and social housing in Cork
The occupiers of Apollo House in Dublin – who formed under the banner of the Home Sweet Home campaign – argued last month that buildings under Nama control should be repurposed as accommodation for homeless people and those in need.
Nama has to date identified 6,941 properties under its control to be potentially used as social housing across the country. Demand was confirmed by local councils for 2,748 of these (meaning 4,193 are no longer being considered).
The reasons for a council not taking up Nama property offers are varied. In many cases the demand for housing in a particular area just isn’t there. Nama also withdraws a number of the units it offers to be sold on the private market.
In other instances, a too-large grouping of social housing in a particular area goes against guidelines for sustainable communities – that is, ensuring that too many social housing units don’t get built-in the same area in order to avoid social exclusion.
The Housing Department defines it as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
This is a key part of the government’s Housing Action Plan, which states that sustainability is important in order to “avoid repeating the mistakes of the past”.
Cork is divided into two local authorities – Cork County Council and Cork City Council.
There are currently 4,241 people on the social housing waiting list for Cork County Council.
The council has to date been offered 806 units by Nama for use as social housing. Of these, demand has been confirmed for 322, with 307 being completed as of the end of last year.
In total, 106 units were rejected by the council (only seven for the sustainable community reason), while 371 of the potential homes were withdrawn by Nama.
At Woodfield in Blarney, the 12 units operated by Túath sit at the end of an estate made up of a mix of private and rented houses – the sought after sustainable community.
The units are made up of two and three-bedroom homes, mostly for young families. There is also a large garden around the back of the complex.
Túath places a lot of importance in the sustainable community model.
Lisa says that her children fit right into the area. They play with the other children from the building, as well as the other children from the wider estate.
“I could see us staying here long-term. It’s a lovely place – homely,” she says.
The kids especially – they really enjoy it here.
To date, Túath has acquired 446 homes through Nama. Of these, 316 homes (including the Blarney development) were acquired through the special purpose National Asset Residential Property Services (NARPS).
Under this scheme, Nama takes direct ownership of properties and then leases them out to a local authority or housing body.
In most of the cases (like in Blarney) the properties Nama takes control of are the incomplete units in unfinished housing estates (like ghost estates). With the collapse of the housing market in the late-2000s, many developments were left unfinished across the country.
As well as Blarney, Túath has acquired houses across Cork county from Nama – in Mallow, Macroom, Passage West, Midleton and Douglas.
Cork city
In Cork city, the number of units offered to the council by Nama is lower than in the county – with the number of units accepted being lower again.
Figures from the Housing Agency show that 502 units have been identified by Nama for use as social housing. Of these, demand was confirmed for 189 (with 138 being completed).
A total of 313 properties are no longer being considered:
A spokesperson for the council confirmed that it had initially sought to obtain the 135 units before Nama had later withdrawn them.
Local Anti-Austerity Alliance councillor Fiona Ryan has criticised the council for rejecting properties on the basis of sustainable communities.
She points to one example at Ashmount Mews estate on the eastern outskirts of the city.
Nama offered 71 properties to the council to be used as social housing here, with 34 being accepted and 37 being rejected on the basis of a sustainable community not being available.
The homes are managed by Respond – another Approved Housing Body. So far, 23 tenants have since moved into the area, with another 11 due to move in soon.
For Ryan – who is a member of the council’s Housing Strategic Policy Committee – the reason for rejecting properties on the basis of sustainable communities acts as a barrier to housing people in need.
She argues that of the over 4,700 people currently on the Cork City Council housing waiting list, many would love the chance to live at Ashmount Mews.
“We’re in a housing emergency and I don’t think that it’s acceptable to be rejecting 37 houses or any suitable houses,” says Ryan.
“Just on the basis of unfounded fears that an over-concentration of social housing will inevitably lead to issues.”
Ryan says that investment in communities and proper services being offered were more important than “having a narrow look at income”.
The concept around mixed tenancies and sustainable communities are an insult to people who have grown up in social housing communities.
She states that she could easily draft a large list of people who would gladly move into the area.
A spokesperson for Cork City Council said that the remaining properties in Cork were not accepted as they “would have not been in line with the principles of sustainable communities”.
So, is Nama providing social housing?
Finance Minister Michael Noonan last week said in the Dáil that Nama had just 173 properties in its portfolio that were currently for sale. Noonan said that many of these were already at the sale agreed stage or between tenancies.
The Home Sweet Home campaign last month sought to highlight the issue of empty Nama buildings and how they could be used to address Ireland’s escalating homelessness crisis.
However, rather than look just at how Nama currently offered social housing units to councils, the campaign also focused on vacant office buildings by taking over Apollo House.
A large part of the campaign was calling for Minister Noonan to use his powers to compel Nama to make buildings under it its control available for homeless accommodation.
Under Section 14 of the Nama Act, the Finance Minister can give a direction to Nama to with carrying out its purposes that it must comply with.
This direction applies in particular to a certain function of Nama, which is laid out in Section 2 of the Act, namely to “contribute to the social and economic development of the State”.
This is what campaigners were calling on the minister to do. A letter delivered by campaigners to the Finance Department at the beginning of last month laid this demand out.
However, the department responded by pointing out the units Nama has already offered to councils as fulfilling its social remit requirements.
The department also pointed out that Nama plans to facilitate the delivery of 20,000 private units by 2020. Under Part V of planning laws, 10% of these will be required to be social.
Meanwhile, while the sustainable communities model for councils not accepting potential social housing has come under criticism, it is a key tenet of the Housing Action Plan and is likely to remain in force.
The Approved Housing Bodies, for their part, have welcomed Nama’s input putting forward properties to be acquired.
Respond, Tuath Housing and Clúid all expressed satisfaction with the role Nama had played in bringing more social housing properties on stream.
However, for campaigners, people on housing lists and those critical of the government’s Housing Action Plan – the problems with the State-run bad bank will remain.
The selling off of assets to foreign investment funds (so-called vulture funds) and the vast majority of properties under Nama’s control going towards private ownership will remain points of major contention.
*Sarah’s name has been changed
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Coveney pressed ahead with the measure despite universal cries that it would only make the situation worse, which was blindingly obvious. The ONLY way to deal with a demand issue is to increase supply, NOT to hand grants to people to buy homes which aren’t availble.
Does anyone have a list of government ministers and TDs who stand to benefit for a continued rise in the value of property?
@The Risen: Well, I assume they all own a house at this stage so all of them Id imagine.
@The Risen: the only reason I can think for the government to do this is to push up property prices therefore raising property tax. Oh and their mates get richer.
@The Risen: “Coveney pressed ahead with the measure despite universal cries that it would only make the situation worse, which was blindingly obvious”
Let’s be clear, it didn’t make matters worse for everyone, for those it was targeting, it improved their ability to purchase homes they so desperately wanted.
There is a massive supply shortage around Dublin at the moment – it’s driving a price increase (which is not a bubble – bubbles are where speculation drive prices). The supply shortage is keeping 30 somethings renting which is crippling the rental market, especially in and around Dublin where it has reached dangerously high levels threatening economic growth.
Directing ire at the Central bank isn’t the way to go here – we should be demanding Dublin City council commit to an infrastructure plan to support the development of massive high rise small apartments in the city centre (down by the docks ideally) which are urgently needed to get renters out of the 3 and 4 beds in the suburbs and commuter towns. Homes which should be up for sale as family homes are too profitable to rent to people who actually want a small box apartment in the city centre with good wifi!
@Deborah Behan: it is primarily about increasing the security values of mortgages properties for the Banks as the Banks ramp up their efforts to get Possession Orders in the High Court and in the Circuit Court. It is Banks first, non Bank cronies second and thirdly increased LPT in the longer term.
@Deborah Behan: they also get capital gains tax, inheritance tax and huge income tax receipts from the high rents. Apart from that there will come a situation where we get so desperate that the public pressures the government to build at which point they will incentivise all their developer mates to throw up poorly built shoeboxes without question. It’s all part of the plan. Now where have I seen it happen before…?
@Deborah Behan: “How can we hand money to the developers without literally handing it to them?”
@The Risen: Here’s the link to the official list, to download each one, click on 2016 under Dáil and under Senate…
http://www.oireachtas.ie/parliament/tdssenators/registerofmembersinterests/
“Correct itself in the long term” what a kop out… these guys could be weather forecasters.
@iohanx: as Keynes said. “In the long term, we are all dead.”
Makes you sick to think your taxes are being spent like this when you think about it.
I think
@iohanx: it truly is sickening but we seem to tolerate it passively and compliantly.
@Tony Daly: not a sign of public unrest either, amazing.
The slight relaxation of the lending rules I don’t have a problem with, but tax rebates is pure stupidity in a market where there is high demand.
@Reg: loosening credit supply also has an inflationary effect on house prices.
@Tony Daly: It does Tony, doing both together was madness.
@Reg: doing either was bad. Doing both was irresponsible and malfeasance.
How can they not see something is seriously wrong with the housing market. We’re only a few years out of the worst recession in recent years and house prices have surpassed the prices in the ‘Boom’ years.
@Cosmo Kramer: its only a problem if your renting or seeking to buy your own home. Simon owns his own home and is also a landlord so its not a problem for him its actually a good thing
@Cosmo Kramer: “house prices have surpassed the prices in the ‘Boom’ years.”
That’s completely inaccurate, isn’t it?
Aren’t house prices still 30% below the 2007 levels?
@Brinster: You are completely correct. I’m always fascinated by how complete fiction such as that from Cosmo can get 105 likes. It almost as though people have made up their minds, and the facts are irrelevant.
“Correct itself in the long term”
When there is another massive property crash and Paddy has to pick up the tab (again)?
@Shakka1244: but it will be a soft landing!!
@Deborah Behan: as soft as falling into a effluent tank and just as toxic
@Shakka1244: I’ll start the collection pot, I’m sure there’s still a few pension schemes to raide
@Tony Daly: drop a few TDs in that tank, might make them focus
Why are first time buyers restricted to New Builds for the rebate? Surely they should be allowed the same on second hand houses. This was a ploy by politicians to force up the price of housing in Ireland and help their Builder buddies get back to overpricing homes again.
So now we will have a new generation of young people in over priced housing that they won’t be able to move from because inevitably interest rates will have to rise at some stage in the future…
@DubDon: there’s no VAT on a second hand home , hence there is nothing to rebate.
@brian magee: But they could have made it a tax allowance on earnings? Instead.
Construction companies are refusing to build until house prices return to a certain level,so the government decide to try speed up house price recovery hence construction will begin again. Government receive more taxes, construction companies make more money,banks get back to profit quicker while the ordinary joe soap has a minimum of 35 year mortgage at massively inflated mortgage rates. Some kip.
@Paul O Donnell: the state needs to get back involved in building homes and not be reliant on private companies. Government can borrow money at very low interest rates build these homes and even if most of these homes are used for social housing it would still work out cheaper than paying a private landlord or vulture fund vast sums to rent.
Green shoots. .soft landing … here we go again ..
Hard to fathom what this government are about, wouldn’t a vat rebate off the purchase price to first time buyers regardless of income be a better idea. Grants make it look like they are doing someone a favour apart from all the red tape involved …..
@Chris Kirk: a rebate means you have to have the cash in the first place
Makes me laugh that the whingers complaining about the height and ugliness of the large development in Sandyford which was rejected, are wondering now why we have a housing supply crisis. And blaming the government for it. And they’re actually the same commentators. This country, honestly.
@Fred Jensen: the stuff built in sandyford has its own problems the cubes has massive problems to sort out and grand central is starting to look like a dirty Birmingham council block
@Fred Jensen: How can you have a housing supply problem when there are so many vacant properties all around the country?
Or, is the answer the vacant properties earmarked for vulture funds at cents on the Euro?
@Dave Doyle: investors and vulture funds can sit on a empty property waiting for market to return maximum profit before being sold. Its value is increasing every day so it better return than having money in bank. Council’s do it because they haven’t the budget to put fresh paint on a wall. Others are tied up in legal process due to outstanding debts.
But as long as property prices is rising there is no urgency to sell. However if the market was reversed these would be all up for sale asap.
But need less to say it won’t solve housing crisis as there will always be a small number caught up in some process before it is returned to market. However Govn spin use this to deflect from the real issue there just isn’t enough homes
@tom: Not everyone earns enough to buy their own home. For many and diverse reasons. At no time in the state could everyone afford a mortgage. So social housing was built to cater for those citizens in this position. It was that or tenements. It’s back to tenements nowaday. Or it’s mortgage to rent, the prefered neoliberal solution. Debt slavery while you work and the streets when you can’t.
The few houses being built as social housing, are being snapped up by council officials circumventing the rules.
The bottom line is home ownership is to be a thing of the past. No longer will an ordinary citizen be allowed a stake in society that owning property brings.
That’s the agenda.
For those with a home which is increasing in value, they are far more likely to vote for FG and FF. In other words, FG will get far better election results by inflating property prices. Conservative political parties thrive on the basis of booming residential property values.
@Tony Daly: As has always been said about bricks and mortar being a good safe investment for the ordinary person. But this wasn’t the case in 2008 when the over inflated housing market crashed and people out of work became exposed because they couldn’t pay their mortgages. The rise in property prices is inevitable when there is a shortage of supply among a rising population, you could say that it is a generational thing to want to own your own home while you can afford it. There is to much emphasis put on investment rather than home ownership, if people want to gamble then they should go into stocks and shares instead.
@Chris Kirk: You do realise if you retained the property bought in 2008 it would be true. Negative equity properties are nearly gone. Your mortgage would be less than if you paid rent and you are nearly 10 years along with your mortgage.
Now say you didn’t buy then and you were 35. you are now 44 and the banks won’t give you a 25 year mortgage. You now can never get a mortgage and are stuck renting.
Long term bricks and mortar is still a good idea. Some people will never own that is the new reality.
Just goes to show Coveney knows as much about housing as anybody with half a passing interest in the topic, even with all the resources he’s got. He’s a waste of space in politics.
300 houses last year were for first time buyers for new builds
A tiny fraction.
It’s not that scheme that’s pushing up prices. People were simply waiting and saving and now are ready to buy houses
Coveney did what he did to gratify certain people and to show that the government was doing something, yes to increase the supply is the appropriate way to go , but REMEMBER if it goes wrong again, Coveney and his government won’t feel any hardship you the people with big borrowings and the those who keep on the straight and pay their way will be hit again, They make the rules and you take the risk.
If the Kenny Report had been implemented back in 1971 so much exploitation could have been avoided.
The best proof of the theories of Piketty is Ireland.
What you mean is there are people deliberately driving the prices up for their own means I hate everything to do with privatisation and all the greed that go with a lot of these Landlords.
Whatever, I’ve resigned myself to living 150 kilometres from Dublin or maybe buy a caravan at some stage.
Banks, conservative politicians and developers against the people.
The most important factor is house prices as a multiplier of earned incomes. The multiplier is increasing again. Some developers may decide when we get back to 8 times income to stop speculating in buying and selling land banks and to start developing again. For now the gains out of development land banks are far more generous and less risky.
Taxpayers money been used to increase developers profits & put more debt on house purchasers. This is a sick joke.
Also more people back working are now in a position to buy houses.
@James Nellie: But they’re really not.
There is only one way to solve housing and rental crisis and its build more homes. If the private sector isn’t willing or able to meet demand then the state needs to step in and using compulsory purchase buy up the land banks and engage directly builders to build.
Anything short of this is just tinkering to buy time and kicking the can down the road.
There is a hole hoard of middle men between a person having their own home. Speculators investors developers landlords vulture funds all have only one goal and that is extract as much money as humanely possible from those trying to have their own home.
Battening down the hatches here preparing for the next soft landing. The Central Bank is in denial the new bubble will pop and I am on the board for the successor to nama so I can buy up all the newly repossessed properties and flip them like any responsible company who pays a donation to FG and Feel and Fail party with the tent ready to be perched up in Galway.Housing crises Homeless crisis Bus crises hospital crisis yawn yawnI’ve an extra 2700 euro in my paypacket.Let them all eat cake I mean I want to put my nose further in the trough!
@John Dillon: buy when everyone is selling. Sell when everyone is buying.
The Government and the CBI believe is pro cyclical policies.
Economic disasters increase the wealth of the super wealthy.
This article cant be right. Shure didn’t Simple Simon tell the pie man that this scheme would make no difference to house prices?? And he was “advised” by “experts”!!
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