'The ‘mica’ label should not follow Donegal homes indefinitely'

Councillor Joy Beard has called for urgent action to address the issues faced by Donegal homeowners affected by defective concrete.

Cllr Beard of the 100% Redress Party has called for urgent action to address the banking, mortgage, insurance and conveyancing difficulties continuing to affect homeowners in Donegal, warning that the historic misdiagnosis of the defective concrete block crisis as being caused by mica has left a stigma attached to properties which persists today.

Her comments come as the Banking and Insurance Defective Concrete Focus Group has written to the Minister of State at the Department of Finance, Robert Troy TD, seeking a meeting to discuss what it describes as a growing mortgage and financial services crisis in areas affected by defective concrete blocks.

Cllr Beard said the scientific understanding of the deterioration has moved on considerably, but this is not yet consistently reflected in how properties are assessed by lenders, insurers and others involved in the property market.

“For many years this was called the ‘mica crisis,’ and homeowners were repeatedly told that mica was the cause of their homes deteriorating. That terminology has become deeply embedded in the banking, insurance, and property sectors.

“We now have peer-reviewed research showing that the serious deterioration investigated in Donegal is associated with pyrrhotite oxidation triggering Internal Sulphate Attack. Yet homeowners can still find that a mica percentage on a historic test report immediately creates concern when they try to sell or when a purchaser applies for a mortgage.”

A 2023 peer-reviewed study of affected Donegal homes found that the concrete suffered from Internal Sulphate Attack triggered by pyrrhotite oxidation. Further research published in 2024 examined different structural elements of affected Donegal homes and again identified pyrrhotite oxidation and Internal Sulphate Attack as the deterioration mechanism.

The Department of Housing itself acknowledged in November 2024 that preliminary scientific research had identified Internal Sulphate Attack arising from excessive pyrrhotite as the underlying damage mechanism in affected Donegal dwellings.

Cllr Beard said: “That distinction matters enormously. Mica may be present in concrete, but its presence or a percentage figure alone should not automatically determine whether a house is considered mortgageable, insurable or saleable.

“We need to move away from the stigma created by the historic ‘mica’ label, which was wrong, and towards a properly evidence-based assessment of the actual condition of the property, the aggregate present and the relevant deterioration mechanisms.”

She said she has recently been contacted by homeowners whose attempts to sell properties have encountered difficulties because prospective purchasers could not secure mortgage approval.

“These are real people whose lives are being put on hold. People may need to move because of employment, health, retirement, or family circumstances.

“A house should not effectively become trapped in the market because an old report records a mica percentage without proper consideration of whether the deleterious minerals and deterioration mechanisms we now understand to be important are actually present.”

In its letter to Minister Troy, the Banking and Insurance Defective Concrete Focus Group highlights continuing difficulties with mortgage finance, restructuring existing loans, insurance cover and financial certainty for homeowners navigating remediation.

The Group also specifically raises what it describes as ‘the legacy of the incorrect mica definition’, saying this has contributed to uncertainty and inconsistency in lending and valuation practices.

Cllr Beard said this is precisely why a joined-up response is required, “At the moment homeowners can be told one thing about their property under the remediation system and then encounter a completely different interpretation when they try to sell, insure or obtain mortgage finance.”

The wider multi-stakeholder forum includes representatives from Banking & Payments Federation Ireland, the Law Society of Ireland, Engineers Ireland, Insurance Ireland, Brokers Ireland, the Institute of Professional Auctioneers & Valuers, the Society of Chartered Surveyors Ireland and the Irish Banking Culture Board.

The Focus Group has called for a practical framework to provide greater clarity and consistency in the housing market in affected areas.

Cllr Beard said the same clarity is required for properties that have already undergone remediation, particularly where original materials such as foundations remain.

“If Government is funding remediation, then there must also be clarity about what happens afterwards. What documentation does a homeowner need? How are retained materials such as foundations assessed? What does a lender regard as acceptable? What does an insurer require?” Cllr Beard said, “A homeowner should not complete remediation under a State-backed scheme only to discover later, when they need to sell, that a bank or insurer is applying a different standard or interpretation.”

She said this reinforces the importance of the ongoing work of the Banking and Insurance Defective Concrete Focus Group, who are looking at options and working on potentially a classification system, but the Housing Department, who have been invited to attend these meetings, have yet to attend.

“The homeowners involved in the Banking and Insurance Defective Concrete Focus Group have spent years getting the banking, insurance, engineering, legal and property sectors around the same table. Now that work must result in something tangible for homeowners.

“We need a clear, science-led framework that can be applied consistently across lenders and insurers and gives buyers and sellers confidence in the market.

“The science has moved on. Our banking, insurance and conveyancing systems need to move with it.

“The historic ‘mica’ label should not continue to follow Donegal homes indefinitely and prevent people from moving on with their lives.”