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RTÉ News
11-06-2025
- Politics
- RTÉ News
Plan for 63 Sligo social homes delayed over costs
The delivery of a planned 63-unit social housing scheme in Sligo has been put on hold after the Department of Housing decided not to proceed over concerns about the cost of the project. The planned scheme at Rathellen, Finisklin was one of six schemes nationwide, comprising 486 social housing units in total that was due to be delivered under a public private partnership. The 486 units were due to be delivered as part of 'Social Housing Bundle 3 PPP' across four local authority areas. Dublin City Council is the lead local authority for the social housing bundle which comprises six schemes in total, including three sites in the capital alongside further sites in Kildare, Wicklow and Sligo. In a letter to the local authorities, the Department of Housing, Local Government and Heritage said it decided not to proceed "due to the overall costs "which are now considered too high". All six sites within the social housing bundle have full planning permission. The Department said the units "will now be delivered by way of an alternative procurement and delivery strategy". The Department is due to begin a review with the National Development Finance Agency on the future Social Housing Public Private Partnership (PPP) bundles. The Department said it remains committed to delivering the 486 social housing units that PPP Bundle 3 was designed to provide in partnership with the NDFA and the relevant Local Authorities. Meanwhile, Sligo County Council has told public representatives that its Housing Capital Team is reviewing the options available for an alternative procurement and delivery strategy for the Rathellen site. Any planned strategy will require the agreement of the Department of Housing, Local Government and Heritage. 'Hugely disappointing' Cathaoirleach of Sligo County Council Cllr Declan Bree told RTÉ News he feels the situation is hugely disappointing. Cllr Bree said following the receipt of tenders there was an expectation that construction work on the housing scheme would commence shortly. He said there are more than 1,660 households on Sligo County Council's housing waiting list and the current housing crisis is causing "huge distress and anxiety". "In this context the decision not to proceed with the 63 social housing units in Finisklin can only be described as a serious setback. "Given the failure of the Minister and his Department to deliver this public private partnership deal we now need to see the Minister and the Government provide the necessary funding directly to the County Council so as we can deliver the scheme in a speedy and efficient manner," Cllr Bree said.
The Journal
06-06-2025
- Business
- The Journal
Housing Minister pulls plug on almost 500 social homes across six sites over rising costs
ALMOST 500 HOMES have been delayed after Housing Minister James Browne pulled the plug over concerns about the costs involved in the multimillion euro project. The social housing developments were understood to be near shovel-ready and were to be delivered under a public private partnership (PPP) scheme across six sites. Up to 244 of the homes were planned for Dublin and the others are spread across Kildare, Wicklow and Sligo. It is unclear when the homes will now be delivered, but the Housing Minister stressed tonight in a statement to The Journal that the government aims to to deliver them 'as expeditiously as possible' through an 'alternative procurement and delivery strategy'. The decision is set to have significant ramifications, as the department confirmed this evening that housing officials will now carry out a review of four upcoming PPP bundles – each earmarked to contain hundreds of homes. 'After careful evaluation of the costs associated with the 486 homes which were to be delivered under PPP Bundle 3, the Department has decided not to proceed with contract award on a value for money basis,' Browne said tonight. 'The department and the relevant local authorities remain fully committed to delivering the social housing that PPP Bundle 3 was designed to provide. These social homes are very much needed and remain a priority for Government, my Department and the relevant Local Authorities.' Brown said that all six sites have 'full planning permission' and that the department is determined to deliver the homes quickly under a new procurement and delivery strategy. The sites that have been hit by the delay are: 68 homes at the Ready Mix Site, East Wall Road, Dublin 3; 93 homes earmarked for older people in Shangan Road, Ballymun, Dublin 9; 83 homes in Collins Avenue, Whitehall, Dublin 9; 73 homes in Ardrew, Athy, Co. Kildare; 106 homes in Burgage More, Blessington, Co. Wicklow; and 63 homes in Rathellen, Finisklin, Sligo. Advertisement It is not yet known how much the project was set to cost the taxpayer but inflation has been an increasing issue in the housing sector in recent years. In the two previous public private partnership projects, delivered under the same process, final capital spend was €119 million and €129 million respectively. Homes in the latter of those projects costed on average €277,000, excluding VAT. Sinn Féin housing spokesperson Eoin Ó Broin said the sudden reversal means the minister needs to provide funding to local councils to deliver the homes directly with contractors 'without any further delay'. 'I have always argued that PPPs don't represent value for money for the taxpayer. It's somewhat ironic the government are now saying they don't believe PPPs are good value for money,' Ó Broin told The Journal . He said that the schemes are a poor way to deliver social housing, partly due to the complex structure requiring up to five different partners for each housing project. 'The most important thing now – on foot of the minister's decision – is what he's going to do to deliver, as a matter of urgency, these homes which are badly needed,' Ó Broin added. 'Homelessness is rising, house prices are rising, waiting lists are rising, council waiting lists are rising. This needs to be resolved as soon as possible.' This week's halting of the PPP scheme is likely to pile further pressure on the government over its housing delivery numbers. The government came under fire in recent months for missing its overall 2024 housing target of 40,000 homes by a margin of 10,000. And it came in for further criticism in April when it emerged that it had fallen short of its social housing target for last year by 18%, amounting to 2,345 homes. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
