Pillar banks urged to lend more money for house building
A local councillor has issued an appeal to the main Irish banks to approve finance for developers wishing to build residential units.
Cllr Cyril Burke raised the matter at Mayo Co Council's Planning and Corporate Development Strategic Policy Committee (SPC), noting that the pillar banks of Bank of Ireland and AIB are "still not coming up with funding for small developers to build housing".
"The reality is local authorities and the Government have been delivering most of the housing stock. The private market is only beginning to take off, but people need third-party finance and the pillar banks need to come up to the mark and I am appealing to them to do this.”
SPC Cathaoirleach Cllr Michael Burke agreed, saying: “These banks need to come back to the playing field because they seem to be completely off it. For a plan of eight houses, they might only give funding for two. In terms of the property market, it isn’t going anywhere negative at the moment, and is continuing to rise in value. I know a case in Dublin where a person who bid €420,000 ended up at €495,000, but this just shows people want houses very badly and are willing to pay for it.”
Cllr Burke said that house prices in Westport are known to be more expensive, “but in towns like Claremorris, Ballina and Ballinrobe there is a great market for houses, but people can’t build because they can’t get the finance".
"The interest is clearly there because if you open a showhouse, plenty will turn up.”
- Published as part of the Local Democracy Reporting Scheme.
