Middle income earners left out of new Laois affordable home scheme

Young Laois workers hoping to buy their own homes have to be earning over €50,000 a year to qualify for the new affordable house purchase scheme.

Laois County Council is reviving the Affordable Dwelling scheme, lost since the Celtic Tiger, that offers a discount price to first time and fresh start homebuyers of brand new houses and apartments. 

It is aimed at helping people whose mortgage and deposit still leave a shortfall on the cost of the house. The council effectively buys part of the house along with the buyer, taking an equity share. The buyer then pays back that loan as well as their mortgage loan.

However so far the council has almost no houses in the pipeline, and only people earning over €50k can qualify.

It's "absolutely crazy" and shows a lack of common sense in Government, say Laois councillors. 

Cllr Caroline Dwane Stanley is chair of the Housing Strategic Policy Committee who first viewed the proposed scheme for the county. She believes it will leave out middle earners with salaries between €35,000 and €50,000.  Anybody earning under €35,000 now qualifies for social housing in Laois.

"The cohort of €35,000 to €50,000 there is nothing there for them. It's absolutely crazy. This scheme is set down by the department. We're stuck with it. If you're earning €50,000 I still see problems because of the gap between the cost and what you're allowed to borrow. Options are very limited. They are all saying the cost rental scheme is not effective outside Dublin. 

"I welcome any sort of scheme but i do have my concerns. Here in Portlaoise the latest lot of new builds are costing around €330,000. With this scheme you can only take a maximum of €270,000. People will find themselves with a gap of at least €60,000. Then they have to come up with a deposit of €20,000. That will be a deterrent for some," she said.

"It targets those with incomes above €50,000. Unfortunately it's only on new builds. You can't buy a secondhand house but they are on sale for €250,000," she said.

She also is concerned that the application process is only online, which could affect those with "literacy issues".

Cllr Willie Aird said that if it leaves out people earning over €35k and less and €50k, "it's not affordable so".

He said it will also leave out people who want to buy in Portlaoise, where houses are more expensive.

"If the only place these houses can be built is Ballyroan and Abbeyleix, anybody in the Portlaoise area that can't make the housing list is game over," he said.

Cllr Catherine Fitzgerald said it will at least help the people who earn between €50,000 and €70,000.

"It's not for people earning between €35,000 to €50,000. We have to accept it for those who do qualify. but we have to increase the threshold for the housing list. People can't even afford serviced sites," she said.

"Despite the housing crisis we haven't learned. This red tape is just not working. Make it affordable for people over the social housing income threshold. it's common sense and they obviously haven't got it," said Cllr Ollie Clooney. 

Angela McEvoy is the Director of Services for Housing.

"One unit is gone to the Department, there is no decision yet. There have been a good number of expressions of interest from developers. We are assessing them all. We are trying to get a mix of housing. We have a target of 38 but that is very much a minimum. We are trying to advance the Tyrrells Land site and have an affordable scheme there," she said.

In May the councillors approved the document setting out how applicants will be prioritised if it is oversubscribed. Those include their income and savings, the suitability of the property for the buyer, and residency in Ireland.

Ms McEvoy said that the online process "doesn't seem to be an obstacle" in other counties with the scheme up and running.

She added that applicants are welcome to come in to the council for advice on making their application. 

PROPERTY WATCH: Sauna, solar panels and scenery at €575,000 Laois house

Ms McEvoy also said that there are other options to getting a home, including buying a serviced site, or buying a vacant house that the council has bought by compulsory purchase order.

"This is a subsidy for people earning a minimum of €50,000 but if there is a business case to go higher to €75,000, we will make it. that will lower the cost of the house, but we will make the most of the subsidey we can avail of," the director said.