Housing association Clúid has announced it can no longer deliver 40 cost-rental homes at its Bannow Road development in Cabra. The decision comes as the cost-rental element of the scheme is deemed unviable due to rising construction and maintenance costs, forcing Clúid to switch to 100 per cent social housing. This development poses a challenge to the State's cost-rental program, which aims to provide affordable housing for workers earning too much for social housing but struggling with private market rents.
Housing body Clúid says it will have to switch to 100 per cent social housing at Bannow Road development in Cabra Housing association Clúid is building 144 homes on a Dublin City Council site at Bannow Road in Cabra, close to Broombridge station.
Photograph: Alan BetsonThe State’s cost-rental programme has been dealt a blow following the decision of one of the largest non-profit housing bodies to scrap ascheme to provide homes for workers who earn too much to qualify for social housing but cannot afford private market rents. The council said it has been informed by Clúid it “can no longer deliver 40 cost-rental homes at Bannow Road” as “the cost-rental element of the scheme is unviable” due to rising costs. Instead Clúid intends to submit an application to theUnder the cost-rental system, operating since 2021, rents are based on the cost of building, managing and maintaining the properties. The terms of the State-subsidised scheme require rents to be at least 25 per below market values for the area. Applicants must have an after-tax income under €66,000 in Dublin and €59,000 outside the capital, but the monthly rent should not be more than 35 per cent of their net income.Trump claims Iran to suspend nuclear programme, with deal to end war ‘mostly complete’The system has operated successfully where the cost-rental developers, usually non-profit housing bodies, are able to provide the homes at low enough rents so that workers with earnings under the maximum threshold can afford the rent without paying more than a third of their net incomes monthly.where the development cost, or “building, managing and maintaining” the properties, is highest it has been a struggle for housing organisations to provide the homes within the scheme’s terms. Clúid, which delivered the State’s first cost-rental housing scheme in Balbriggan in Fingal, north Dublin, in 2021, said at the Bannow Road development it was the future maintenance costs that have pushed the cost-rental element beyond viability. “Rising costs in areas such as planned maintenance, cyclical costs and component replacement mean that it would not be possible to deliver these as cost-rental homes with rents 25 per cent below market rate,” it said in a statement. It said it remained committed to providing cost-rental homes “across Ireland” but proposed developments would be assessed “on a case-by-case basis to ensure the funding available to us will be sufficient to cover buying and maintaining the property and providing an excellent resident experience”. It said it was “confident” the department would support the change from cost-rental to social housing at the Bannow Road site. The department did not respond to queries on Friday. Cost-rental is one of the key elements of the Government’s housing programme, particularly in Dublin, with a target more than 4,000 cost-rental homes in the capital up to 2030. A spokesman for the department said it was committed to cost rental and where viability issues arise “works with providers to reassess financial models and potentially vary the funding arrangements”. However, he said: “Not every cost-rental project can be made viable under all circumstances. In the case of the development at Bannow Road, it is understood that Clúid is proposing they become social housing, and the department will consider this application when received.”Planning permission granted for third time to Milltown housing scheme held up by objectionsOver 240 people apply for 36 new Dublin homes on sale at prices starting at €291KMOST READCartel leader Daniel Kinahan arrested in Dubai following covert police operation
Clúid Cost-Rental Social Housing Bannow Road Dublin
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