Sinn Féin leader Mary Lou McDonald has told the Dáil that 9,000 “wasteful” long-term lease agreements, costing more than €3 billion, have been agreed by Government to provide social housing.
She said it is a very sweet deal for the property funds and in some cases it costs far more than the price of buying the homes.
“The property funds are laughing all the way to the bank,” she said and called for the building of more public homes and public lands.
Taoiseach Simon Harris said the phasing out of long-term leasing is under way because the Government was moving to a position where it can build more social homes.
He said there are around 29,000 homes under construction at the moment.
Mr Harris said the long-term leasing of social homes will be ended by the close of 2025.
The Taoiseach also confirmed that the rent pressure zones have been extended for another year.
Social Democrats leader Holly Cairns said that, as Taoiseach, Micheál Martin gave a “clear commitment” that the State would end long-term leasing deals, adding: “It feels like personalities [in government] change, but the broken policies remain the same.”
She said the reality was that such rents had “gone through the roof”, with prices being charged at €3,200 per month
The Cork South West TD said over a 25-year lease, the State is spending €900,000 on a single social home.
She said while the State “pays through the nose” for such properties “nothing is left” at the end of the lease, as the property reverts to the investors.
