Tuath Housing Association reposted this
Excellent Piece here from #AHB member Tuath Housing Association CEO Sean O'Connor “There is this criticism of the sector displacing other potential buyers. The majority of our output is apartments. And since the private sector retreated from that, the fact that we have stepped in to forward fund is keeping the output up. “We're keeping apartment development going. And I would say, unequivocally, it is a better for the country that we deliver apartments than the private rental sector (PRS). There is a place for PRS, but the rents they charge are exorbitant.” O’Connor said Tuath Housing Association does not “rock up to finished housing estates and write a cheque”. “It doesn't happen like that. We make stage payments to developers through forward funding arrangements and through forward purchase agreements, we sign an agreement to buy properties. “The latter is quite a safe option for us because there's no stage payments and once a price is agreed, that's it. There's no cost inflation. Main risk we have is maybe a contractor solvency issue.” He added AHBs then have to face the pressures of repay that capital. “There is some concern about the money the state pays AHBs, but we have to pay it back, and we pay it back with interest on it. “The majority of our funding funds come from the Housing Finance Agency plc. The point I'm making is, people might feel we have been gifted this money. That’s not the case, we we have to worry about repaying it, and with interest.” Tuath, which added 2,489 new homes to its portfolio in 2024, now has 15,000 properties under management. Last year, it cost the charity an average of €365,000 to deliver each new property. Broken down further, the average price paid for a house was €355,000 and an apartment was €378,000. O’Connor is currently eyeing up how Tuath Housing can add a further 5,000 units to meet its target of 20,000 homes under management by 2027. While it’s doable, it will come at a cost. “On our more recent contracts on projects, which have just started in the ground or are about the start, the average cost of the forward-funded apartment last year we agreed was €446,000,” O’Connor said. “The main frustration for us at the minute is never ending rise in costs. A large thrust for the government's program is about accelerating housing supply. But I think it just needs to be a laser focus on affordability and viability. https://lnkd.in/et9szMpF #AHBs #approvehousingbodies #socialhousing #affordablehousing #costrental #sustainablecommunities
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