DUBLIN City Council plans to go ahead with rent-to-buy housing agreements in Finglas despite local uncertainty. However, it remains unclear if the original terms will be honoured.
The council introduced 91 rent-to-buy agreements for apartments in Rialto, Glasnevin and Finglas back in 2010 under a pilot scheme designed to provide accommodation for locals on the council’s affordable housing
list.
The scheme was earmarked to be rolled out nationwide but it failed to meet expectations and has now been abolished.
The agreements allowed locals to rent fully-furnished apartments at a reduced rate and to buy them later at a price agreed before they moved in.
If the tenants still wanted to buy after three years, 80 per cent of the rent paid during the tenancy part of the agreement would be deducted from the price.
But not all the agreements have been completed and residents living at Prospect Hill apartments in Finglas are still waiting for a contract to buy the homes they’ve been living in for over three years.
Residents claim they’ve been told by council officials that sales can’t be completed until the units are awarded a certificate of compliance, but they can’t get any further information.
The issue was raised recently in the Dail by local TD John Lyons (Lab), who said some residents had been told they wouldn’t be offered the apartments at the price agreed in 2010.
“They were informed that the properties would not be offered for sale at the market value agreed at the beginning of the rent-to-buy scheme and that there would be no deduction for rent paid over the term of the three years,
? he said.
“As matters stand, the residents of Prospect Hill, Finglas, are in limbo.
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Completion of the rent-to-buy agreements in Prospect Hill have been delayed by technical issues, partially related to common areas of the complex not yet handed over to the management company.
Deputy Lyons said the rent-to-buy scheme was a good one, but claimed the council had moved the goalposts for residents in Prospect Hill.
“Those who signed up to agreements have been informed by the city council that it does not know whether it is going to allow them to buy these units as a result of some technical difficulties that need to be ironed out,
? he said.
“If nothing else, the tenants in Prospect Hill should be treated fairly and consulted by Dublin City Council.
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Deputy Lyons has now called on the Minister for Environment, Community and Local Government, Alan Kelly, to address the issue.
Northside People understands that the technical issues holding up sales of the apartments are set to be resolved over the coming weeks and the council intends to honour the original rent-to-buy agreements.
However, when contacted by this newspaper for clarification on the issue, a council spokesperson said:
“The original rent-to-buy scheme was based on market values in 2010.
“As there was a substantial drop in house prices generally, the scheme was no longer viable. It was therefore revised with more favourable terms offered.
“If there is some doubt regarding the terms available, people are requested to contact the Housing Department directly.
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