Written answer
House Prices
The Minister said subsidies let Galway councils offer Starter Homes at least 15% below market, with prices tailored to applicants’ means; 230 homes are approved.
116. Deputy John Connolly asked the Minister for Housing, Local Government and Heritage his Department's assessment of the purchase prices being sought for homes under affordable housing schemes in Galway County; his Departments views on whether such prices are genuinely affordable for average-income households in the county. [68939/26]
Comment on this
Supporting affordable home ownership is at the centre of Government’s housing policy and our Housing Plan, Delivering Homes, Building Communities.
To this end, the Affordable Housing Fund is available to support local authorities like Galway County Council to address identified affordability needs in their area by providing a grant subsidy ranging from €50,000 to €100,000 per Starter Purchase home. The level of subsidy depends on the location and density of the housing scheme concerned and acts as a direct subvention towards the costs of developing the scheme.
This subsidy enables local authorities to make homes available under the Starter Home Purchase Scheme (formerly known as the Local Authority Affordable Purchase Scheme), at affordable prices at least 15% below market rates.
Under the scheme, purchasers pay a price for their new home in accordance with their own individual purchasing power. This price is calculated as outlined in Affordable Housing Regulations of 2023 and will vary from person to person depending on their income, mortgage, deposit and savings. Calculations are based on the previous 12 months income as at the date of application and to be eligible, an applicant must have an affordability gap of at least 5% between what they can fund and the open market value of the home.
To date, Galway County Council has received Affordable Housing Fund approval to support the delivery of over 230 Starter Homes for purchase across four schemes, including 37 homes at Fearann na hEascrach in Athenry which were recently advertised with minimum sales prices approximately 18% below market prices.
My Department, along with the Housing Agency and the Housing Delivery Coordination Office of the Local Government Management Agency, continue to be available to advise and support Galway County Council in respect of their planned response to affordable housing needs.