The selling price of discounted dwellings made available for purchase by a local authority under the affordable dwelling purchase arrangements is influenced by a number of factors, particularly the overall cost of each particular development, which can vary significantly from one site to another, the tenure mix involved an the local housing market. The appropriate way to take these factors into account is ultimately through a competitive procurement process rather than through price regulation.
A transparent and exhaustive process has been undertaken over many years by Dublin City Council to allow it to identify the most effective delivery model for O’Devaney Gardens, to ensure that this key site is developed in a tenure sustainable and financially viable way. This has included a detailed procurement process which has now reached the point where a preferred bidder has been selected and through which the City Council will be able to ensure that a high quality redevelopment of the site, with significant local community facilities, will be delivered.
In addition to the 56 social housing homes already under construction on the site, almost 770 further homes are to be provided, including nearly 200 further social housing homes as well as 165 homes at more affordable process, catering for those families who may not be eligible for social housing but may still need support in meeting their housing needs. The indications are that the homes to be made available under the affordable dwelling purchase arrangements will have a discount on the open market prices of 30-40%. The referenced figure of €420,000 is understood to relate to just 4 of the 165 discounted homes planned to be made available and I understand that Dublin City Council is re-examining how the price of those homes might be reduced below €400,000. The indicative prices for all the other affordable homes are considerably less than the referenced figure and, in most cases, significantly so; in fact, the majority of the homes have indicative prices below €310,000. A couple who are each on average earnings - approx. €40,000 - would be in a position to afford most of the indicative prices quoted for the O'Devaney Gardens development.
The significant discounts which will be provided on the affordable purchase homes will mean that homes will be available to very many individuals and families on more moderate incomes who would otherwise not be in a position to own their home in the area concerned.