Homes acquired for Mayo road project 'should be put on market'

A housing system that assigns valuable properties for social housing is not fair to working people, a local councillor has claimed.

Westport councillor Peter Flynn made his comments at last week's meeting of Mayo Co Council in relation to several houses along the new N5 Turlough to Westport dual carriageway, which were compulsorily purchased by the council and Transport Infrastructure Ireland (TII). One of the houses is set to be refurbished at a cost of up to €300,000 before being allocated for social housing.

Cllr Flynn had tabled a motion calling for six properties that the council had compulsorily acquired during the building of the N5 to be immediately put on the open market and the "proceeds from the sales be allocated to the provision of affordable homes”.

In a written response, the council's Head of Housing Olivia Gallagher said two of the six houses are being refurbished with a view to utilising them as social housing. Remediation works ongoing at the two properties currently amount to €229,435 and €254,860 inclusive of VAT. Of the remaining four properties, three are being considered for use by an approved housing body (AHB) while the council hopes to secure the final property for social housing. All six properties were purchased for prices between €95,000 to €270,000, each with an average price of €181,666.

Cllr Flynn welcomed the news that three of the houses are going to an AHB but said he had a problem in relation to the remaining three.

“The one in Westport you are going to spend €200,000 to €300,000 refurbishing, that was occupied up to 2016 so it is very difficult to understand this spend. That house will then have a market value of €600,000 plus. I think working people are struggling with how someone on a €35,000 salary is excluded from any housing funding and then here you are handing that property over to social housing.

“This will be a further red rag to people who are struggling to get by day by day."

Cllr Ger Deere supported his Fine Gael colleague saying: “I agree that we look very carefully at the last three properties." 

Council chief executive Kevin Kelly said the council decided to negotiate with TII in order to buy them and "the quid pro quo was we would honour that by using them for social houses". 

"if we now proceed to sell them then, we have to pay TII the market value and not the price we paid.

“The situation is we now have two with contractors on site with over €200,000 to be spent on each in the refurbishment process. If the members resolve to sell, obviously that is damaging to our relationship with TII and if we sell and don’t recover more than the market value that TII have determined, then we have to pay the [difference] and the contractors for their work as well.” 

The matter was adjourned to the next meeting to allow Mr Kelly to provide councillors with a copy of the contract.

• Published as part of the Local Democracy Reporting Scheme.