A plan to sell State land to developers for as little as half the market value is being drawn up by the Government as part of its commitment to build 10,000 affordable houses, writes Carl O'Brien
The Minister with responsibility for Housing and Urban Renewal, Mr Noel Ahern, said a number of "spearhead" projects using land owned by Government departments or State agencies would kick-start the programme initially.
The houses will be directed at low- and middle-income workers who cannot afford a mortgage, rather than individuals seeking local authority housing.
"The plan is to bring down the site value of a house without directly costing the State money. For example, houses currently selling at around €270,000 could sell for around €220,000 under the initiative," he said.
The Government is also examining a number of other possibilities aimed at freeing up land, which include a referendum on property rights, enhanced compulsory purchase orders and a "use-it-or-lose-it" clause which would prevent developers hoarding land.
Mr Ahern said the affordable housing plan would allow the Government to specify to builders who became involved, what kind of houses should be built and in what price range.
The Taoiseach also expressed his full support for the initiative at a meeting with the Irish Congress of Trade Unions on Tuesday.
The promise to deliver the houses was one of the key breakthroughs which helped to secure a national programme this year.
The Taoiseach told the delegation he understood that just 19 developers had the right to large tracts of land in the commuter belt outside the Dublin area, according to sources at the meeting.
The president of the Congress, Mr Joe O'Toole, one of the authors of the affordable housing initiative, dismissed suggestions that 10,000 houses could not be delivered by the Government. "There was a promise in the last agreement that 50,000 houses a year would be built. People said that couldn't be done, but it was," Mr O'Toole said.
"These houses are vital. What's happening is that less than two dozen developers are holding the next two generations in thrall by keeping a solid grip on land in the eastern part of the country," he said.
The Minister for Housing and Urban Renewal said officials were considering a number of options for the housing plan and the final draft would need to be agreed by the Cabinet. While State land could be used initially, Minister Ahern said he hoped new land could become available for affordable houses under the Government's plans for enhanced compulsory purchase orders.