Local authorities in Dublin and Cork are selling their affordable housing stock on the open market because of a lack of interest among those on their waiting lists.
Cork County Council put more than 400 units on the market last weekend, while Dun Laoghaire Rathdown County Council is due to put more than 100 units up for sale in the coming weeks.
Dun Laoghaire Rathdown paid €27.5m for the 117 properties. The one- and two-bedroom apartments are located mainly in Stepaside and Sandyford, with a number of others in Dun Laoghaire, Leopardstown and Dundrum.
The asking prices had been reduced by around 20% to €130,000 and €270,000. But not one of the 1,900 people on the affordable housing waiting list is interested, so the council is selling them on the open market.
Bernie O'Reilly of the council's housing department says the stock is currently being revalued and should be ready for sale within the next fortnight. Brian Dempsey of Douglas Newman Good says that, if priced properly, the council should have no problem selling the apartments.
Cork County Council has already gone down this road, selling more than 400 of its affordable homes on the open market last weekend. Prices started at €110,000. The council is also offering a €5,000 moving in allowance and, to some, a 97% loan.
But UCD social housing expert Dr Michelle Norris says many councils bought too many properties for affordable housing during the boom. She says that, because they paid cost price at the peak of the market, they are unlikely to re-coup the amounts they spent.
