BIG READ: ‘This scheme is achievable. What is required is the courage and the will to implement it.’

A local Fianna Fáil man has created a proposal that he believes is the solution to some of the country’s housing woes.

Paddy Ryan from Gortnahoe has been a member of Fianna Fáil for the past 60 years and is now an honorary president of the Fianna Fáil Tipperary Comhairle Dáil Cheantar.

He says he thinks it is unfair that so many people cannot afford to build or buy homes, and the Government’s Housing for All strategy will not work.

“I am confident beyond any doubt that the Housing for All, new housing plan for Ireland in its present format, is not the solution to the present housing emergency. It is a sticking plaster approach and most definitely not a solution,” said Mr Ryan.

Mr Ryan said this ‘sticking plaster’ is putting the future of his party in danger.

However, he says he has a new idea based on successful schemes in the 60s, 70s and 80s.

He spoke to the Tipperary Star to make the public aware of an alternative way and gain support for his plan.

“I’m coming in to let the people know there is a solution to the housing problem. All that is required is a common sense approach, and if it is adopted, it will be a solution,” said Mr Ryan.

THE PROPOSAL
Mr Ryan’s proposal would see people who earn between €45,000 and €100,000 access a scheme operated by county councils.

Under the scheme, a person could build their own home or buy a second-hand house as long as certain conditions were met.

The council or other agency would have to be satisfied that a person was capable of paying the deposit and repayments based on their circumstances on application.

The council or agency would consider the application and approve an amount.

This means the approval agency would act as a guarantor for the mortgage. The applicant could then take that approval to a lending institution.

BUILDING AND BUYING
To build, a person would have to ensure the cost of the entire property was no more than €300 per square foot, including stamp duty VAT and site cost.

“If our proposed scheme or a similar one were in operation, there would be a huge demand for houses, and in the present circumstances with a shortage of builders, there would have to be a mechanism on building cost.

“If a mechanism were not in place to control prices, there would be a possibility of home seekers being exploited. The scheme provides for such a mechanism,” said Mr Ryan.

For a second-hand home, the property’s condition would have to meet the required standards.

ASSISTANCE

If a person could not pay their mortgage, the state would help the holder for 36 months.

The cost of assistance would be added to the mortgage to offset the cost to the state.
If, after 36 months, the homeowner still could not pay their mortgage, they could sell the house and pay off the mortgage.

Alternatively, they could allow the property to be taken over by the council and remain in the home.

“It would practically end home evictions in Ireland except for in extreme circumstances,” said Mr Ryan.

HOUSING FOR ALL

The Government has a number of schemes, including but not limited to the Help to Buy and Local Authority Affordable Purchase Schemes.

However, Mr Ryan says these schemes are problematic and do not help those on middle incomes.

Currently, in Ireland, the average income is €871.62 a week or €45,324 over 52 weeks, according to the CSO.

He also believes that the current build-and-buy targets are too low and too costly.

“The new Government scheme is making €400 million available to facilitate the purchase of up to 8,000 over a five-year period which only provides 5% of what’s required.

“This represents 50,000 per home. Under this scheme to facilitate 30,000 homes would cost €1.5 billion.
“The €400 million available to provide 8,000 homes would be sufficient to pay the entire deficit on 30,000 homes for 30 years,” said Mr Ryan.

He said this would have a knock-on effect on the construction industry, jobs and the sustainability of the state.

RESPONSE
Mr Ryan says he has sent his proposal to many of his colleagues in Fianna Fáil and Housing Minister Darragh O’Brien. He said nobody had given him a reason why his scheme would not work, especially as it is based on previous successful schemes.

“I am finding it very difficult to understand why members of the Fianna Fáil parliamentary party, who are members of a party that has a proud history of providing homes for the Irish people, are continuing to support Housing for All.

“As intelligent people, they must be aware that from people attending their clinics, it is most definitely not working.
The facts of the situation are that the housing situation is now worse than when Darragh O’Brien became Minister for Housing in June 2020,” said Mr Ryan.

PICTURE: Tipperary students visit TUS in preparation for their next great adventure

Mr Ryan said he will send his proposal to anyone who wishes to examine it and welcomes suggestions on its improvement.
But he said Fianna Fáil must act now to help people who want to own their own homes and save his party.

“If somebody is preventing you from doing what is right for the people, they must be challenged regardless of their position in the party. Remember, you were elected to do what’s right for the people.

“That is your first responsibility. This scheme is achievable. What is required is the courage and the will to implement it,” said Mr Ryan.