Debate over new scheme to sell social housing to ‘Part V’ tenants

Concern was raised regarding a motion that, if tenants in ‘Part V’ social housing were allowed to purchase the property at cut price, it would devalue others around it.

Under the Planning and Development Act, Part V allows for 20% of new housing developments to be sold to local authorities for affordable or social housing. It applies to developments of 10 or more units.

During a debate at the December meeting of Cavan County Council, Fianna Fáil’s Clifford Kelly proposed a system similar to the Tenant Purchase of Apartments Scheme (TPAS), which offers tenants a discount of 40-60% off the purchase price of the house, depending on their income.

The local authority puts an incremental purchase charge on the house, which reduces yearly, until no charge remains after a specified period (20, 25 or 30 years).

Speaking at the December monthly meeting of Cavan County Council, the Kingscourt representative said he knew of people living in a Part V social house for 20 years who are excluded from purchasing their home under the current rules.

“I think it’s wrong and very wrong they can’t buy,” he said, suggesting that any council tenant should be entitled to buy their home outright after a period of seven or eight years as a sitting tenant.

But Independent Shane P. O’Reilly pointed out that Part V occurs when local authorities buy new houses from property developers of private estates for social and affordable housing under planning laws.

He questioned the fairness in a family purchasing a house at €240,000 only for the council to buy next door and sell the property years later to their tenant “at half the price”.

“I don’t know what they’d say. Or I do,” said Cllr O’Reilly. He said the Part V provision was brought in with a very specific intent, and told the meeting in response to Cllr Kelly’s motion: “You have to respect those who’ve got mortgages.” It was his opinion that the Part V system had worked “fairly well”.

While he agreed with the “sentiment” of what Cllr Kelly was saying, Cllr O’Reilly added: “We shouldn’t be purchasing houses and then selling them at a reduced rate. It’s not fair.” Cllr Áine Smith (FF) supported the motion, but on a “case by case basis” only.

There was support too from Cllrs Peter McVitty and T.P. O’Reilly, both Fine Gael, the latter of whom stated that he had “no problem” with council tenants buying their homes, but that it had to be done in line with “market value”. “The council is not in the business of buying houses and then selling them for nothing,” he said.

Cllr John Paul Feeley (FF) was supportive of the “idea” but again, like others, shared the concern that to sell at property at cut price risked devaluing the market as a whole.

“Maybe there should be more conditions,” he suggested. Responding to the criticisms, Cllr Kelly said people in Part V purchased houses had “spent a lot of money” doing up these houses.

He stated he was not looking for a “special concession” on their behalf, but still felt the current arrangement in place “should be changed”.