Donegal homeowners must know how to make secondhand homes sellable and mortgageable

Sinn Féin TDs Pádraig Mac Lochlainn and Pearse Doherty have said that homeowners affected by defective blocks should be made aware that a working group, led by the Banking and Payments Federation (BPFI), has been established to explore how homes not affected by iron sulfide-related defects can be deemed sellable, mortgageable, and insurable.

This follows recent scientific evidence, which clearly identifies internal sulfate attack, driven by the presence of iron sulfides such as pyrrhotite and pyrite, as the root cause of the crisis.

The relevance of this stakeholder group has increased further as the latest draft of IS:465 suggests the standard is not suitable for use in conveyancing, potentially impacting property transactions and highlighting the need for a clear, evidence-based approach for assessing homes not affected by iron sulfides.

The group will also focus on how financial institutions can better support homeowners who are impacted, particularly those with confirmed iron sulfide-affected homes currently moving through the Scheme. This support is essential to ensure families can access bridging finance and rebuild with certainty and dignity.

The Banks and Insurance Focus Group, working alongside the BPFI, played a key role in establishing the working group, which also includes the Institute of Professional Auctioneers and Valuers, Insurance Ireland, and the Law Society.

However, Sinn Féin TDs have criticised the absence of direct involvement from the government and have called on the Minister for Housing to accept the invitation to participate. In a recent response to Sinn Féin, the Department of Housing indicated that they may attend future meetings when deemed appropriate.

Speaking, Teachta Mac Lochlainn said: “Across Donegal and other affected counties, people and families living in homes that have tested positive for a small amount of mica but that contain no other harmful materials are being denied the option of selling their home to anyone other than cash buyers, significantly reducing the value of their home.

"The emerging scientific evidence is that the cause of our defective block crisis in Donegal is not mica but rather pyrrhotite which causes internal sulfate attack.

"However, mica is the name on everyone's lips and if a home has even a small amount of mica in the blocks, the value of the property plummets along with the possibility of a potential purchaser receiving a mortgage. The BPFI, IPAV and the Banks and Insurance Focus Group have come together to form a working group to deal with this issue.

"They have now made significant progress towards allowing these homes to be mortgageable in the future and it is important that homeowners know this so as they know the reduction in the value of their homes may only be temporary.

"Failure to inform people could lead to profiteering from those intent on purchasing homes at a reduced rate from unknowing homeowners. The government must also stop hiding behind inaction and formally join this working group to ensure progress is made quickly and fairly.”

Teachta Doherty added: “This is also not just about sellers; this is affecting many young families in Donegal who cannot purchase homes because so many properties aren’t mortgageable.

"The government has got it wrong on the defective blocks issue from the very beginning and has been working backwards since. There is no justification for the government’s failure to engage with a working group trying to fix a problem they themselves have ignored for too long.

"After previously refusing our request to join the working group, I now welcome a recent response to me from the government, where they say they may attend a future meeting where appropriate.

“I hope this marks a sea change in their approach to the group and we see the Department represented at future meetings. They should not be at arm’s length to this process. The people of Donegal and other affected counties deserve transparency and urgency on this issue."