New Homes:The Affordable Homes Partnership (AHP) has helped bolster the ailing new-homes market by purchasing nearly 500 homes from builders in the Greater Dublin area since the end of last year.
The AHP has negotiated "substantial discounts" on new homes with developers, according to a spokesperson, which are based on "the bulk purchase and the contractual certainty of sales" and can be as much as €20,000 per home.
So far, 496 homes have been bought by the Partnership, four short of the number requested by the Department of the Environment, Heritage and Local Government last December for affordable housing.
Among the housing schemes it has bought into include Carrington and Heywood in Santry; Castlegarden in Slane, Co Meath; City Park in Citywest; Cluain Ard and Meadow Vale in Arklow, Co Wicklow; Dunboyne Castle in Co Meath; Hazelhatch in Co Kildare; Priors Gate in Tallaght; Primrose Gate in Celbridge; Railway Close in Clongriffin and The Coast in Baldoyle .
According to the AHP the developments were assessed on the basis of their location, suitability and price and have to be close to public transport and local facilities.
As well as the negotiated discount on each property, affordable housing purchasers benefit from a Government subsidy of up to €100,000 per home. However if a person sells their home within 10 years, they have to pay back the percentage discount they received in a claw-back.This charge reduces by one 10th from year 10 to year 20.
The AHP spokesperson says that while these purchases may have been of some benefit with regard to supply of new homes, the number would be "well below a figure that would have had an impact on the market. The homes purchased were carefully selected so as not to be in competition with other purchasers and to avoid an inflationary effect".
The AHP has been involved in other initiatives whereby State lands have been developed or exchanged for affordable homes. It secured two land exchanges at Broc House, Nutley Lane , Dublin 4, and a site at Harcourt Terrace, Dublin 2, yielding a total of 304 affordable homes in South Dublin County Council and Fingal County Council's areas.
The Affordable Housing Scheme helps those on lower incomes to buy their own homes at prices significantly less than the current market value.
