Developers who sell homes at below market value will be given cash incentives as part of the Government’s bid to tackle the housing supply crisis. Strict new rules aimed at protecting tenants are set to be introduced by Environment Minister Alan Kelly, along with a string of sweeteners for builders and landlords. Up to 8,650 affordable homes in Dublin and Cork will be unlocked by the end of 2017 at a cost of €180m to the taxpayer.
For the first time, landlords will have to give three months’ notice prior to eviction and will be offered concessions for long-term leases. The plan will target developers with large land banks, such as those with at least 50 new homes, which have planning permission. Mr Kelly is concerned many apartments being built are coming to market at over €300,000 – out of the reach of many first-time buyers.
The Government is willing to refund developers “in return for accelerating the delivery of new homes at increased volumes and at prices that are more affordable”, according to sources. It is understood the principle of the radical plan has been agreed within Government, however, the funding of the scheme will be discussed by Mr Kelly and Finance Minister Michael Noonan at a special pre-Budget meeting today. John Lowe the Money Doctor stated “ Buyers beware – if you have bought at below cost it does nt necessarily mean your home is now worth more. Proof of the pudding will come when you try to sell it.. The main priority should be affordability – the banks stress test your mortgage by adding 2% onto the interest rate.. you should too !”