Donegal County Council looking to assist people in getting onto housing ladder

Donegal County Council is examining whether serviced sites could be provided in Letterkenny to help more people onto the housing ladder.

The council is also intending to apply for approval for the government's new Starter Homes Programme, which involves newly built homes offered for sale at below market rates for first-time buyers or fresh starters. The submission would be for a scheme initially in Letterkenny.

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Housing issues were raised by Councillor Gerry McMonagle, who called on the Letterkenny-Milford Municipal District to investigate the feasibility of providing serviced sites for people struggling to access either social housing or a mortgage.

In response, the council said it has been examining the feasibility of a serviced sites scheme and is currently assessing council-owned land that could potentially be used for an initial pilot project.

Cllr McMonagle said there is a clear group of people being left behind by the current system.

“We know there is a cohort of people who fall into the tranche of earning too much to be taken onto the housing approved list but falling short of the bank’s criteria of accessing a mortgage,” he told Tuesday's meeting.

Cllr McMonagle highlighted previous serviced sites schemes developed during the old Town Council days at Orchard Grove and Ashbrook, saying they had worked well and helped local families build homes of their own.

"People still living on the serviced sites still speak highly of how it allowed them to build a home for their families," said Cllr McMonagle.

Cllr McMonagle said the council should now look again at its own land banks and consider putting in serviced sites to make them available for people to build homes.

He said that with the high cost of buying a house, strong demand for housing and social housing developments already in the pipeline, many people are still being excluded.

Commenting on the council’s response, Cllr McMonagle said he did not believe there was enough publicity around the schemes already available to help people get on the property ladder.

He urged the council to move ahead with serviced sites for those “falling between the stools”.

Mayor of Letterkenny Ciaran Brogan said he wants the issue discussed further at an upcoming housing meeting next month.

The council's response to Cllr McMonagle's motion is as follows:

“Many households in the county fall into the gap where their household income on one hand is too high to be eligible for social housing, while at the same time they are unable to obtain a mortgage to fund the acquisition or construction of a house to meet their needs.

"There are a range of different schemes available to assist in this regard, including the new Starter Homes Scheme (which has replaced the previous Local Authority Affordable Purchase Scheme), the First Home Scheme, the Help to Buy Scheme, and the Vacant Homes Grant Scheme. The Vacant Homes Grant Scheme has been very successful in Donegal to date, with many households using same in order to get on the property ladder.

"In relation to the recently announced Starter Homes Scheme, the Council has been engaging with the Department of Housing, the Housing Delivery Coordination Office, and other local authorities in relation to same. Engagement is ongoing in this regard, and the Council can confirm that it is intending to make a submission to the Department to seek approval for a scheme in the county, initially in Letterkenny.

"The Council has also been examining the feasibility of a serviced sites scheme and is currently in the process of examining existing Council owned land / sites that could potentially be utilised for an initial pilot scheme. Members will be kept updated on the progress made on both the Starter Homes Scheme and the issue of Serviced Sites.”