I am proposing an amendment to the Fingal Development Plan so that planning conditions will be imposed to require the sale of new apartments. I’ve also written to the Minister for Housing Planning and Local Government as similar provisions are in current guidelines as regards stand-alone and semi-detached houses. The text of the letter and proposed amendment:

Dear Minister O’Brien,

I’m writing to express my concern about the impact on the housing market of commercial institutional bulk purchase of apartment developments in the Fingal area.
As you will be aware part of the overall housing demand in the Howth – Malahide area includes a significant demand for apartments coming from owners of larger houses wishing to “downsize” or “rightsize.” These residents wish to sell their existing house and buy an apartment. Understandably, the prospect of becoming a tenant has almost no appeal for them. The only evidence I have is anecdotal from canvassing the area in recent weeks, but that canvassing has been extensive, and has left me firmly of the opinion that there is a large number of local houseowners who would like to purchase a local apartment to move to.

The consequences for the householders in question are significant, as often the house they are in no longer meets their needs and matches their abilities. Their desire to remain in their community can be frustrated by the lack of appropriate alternative housing. Furthermore, of course, the house they would like to sell would help to meet the housing needs of others.

We have seen some substantial apartment developments in the area in the last few years. The most recently completed, beside Santa Sabina in Sutton, is rental-only.
Recently, I wrote to Marlet, the developer of two further large apartment developments currently under construction in the area (the Techrete and Baily Court sites) to ask whether their developments would be for sale or rent. The response was that they haven’t yet decided.

Amongst other things, this indicates that they have financed the development without investment from a commercial landlord. Indeed, it has been publicly announced that the Techrete site has received investment from Activate Capital which is funded by the Ireland Strategic Investment Fund (ISIF).

Clearly you and your Department will wish to take into account the fact that apartment developments are being financed without the involvement of commercial institutional landlords but are subsequently at risk of bulk sale to them, as you consider policies to ensure the availability of apartments to potential individual purchasers. This is even more significant when public funds (via ISIF) are being invested in the development in question.

I’m not aware of measures which could effectively be put in place at this stage as regards these two developments currently under construction, so that significant numbers of units from either of these developments are put on the market to individual purchasers. If you are, you might consider them. 

Clearly, the scope for influencing planning decisions which have not yet been taken is greater. At our July meeting, I am proposing that Fingal County Council initiates a variation to our Development Plan to provide that our officials should, where there is a demand in the area, consider imposing on apartments a condition similar to that which the Ministerial Guidelines on the Regulation of Commercial Institutional Investment in Housing recommends as regards duplexes and houses. The motion is as follows:

That the Council pursuant to S.13 (1A) of the Planning and Development Act, hereby requests the Chief Executive to prepare a report on the following proposal to initiate a process to consider a variation of the development plan:
The insertion in the Development Plan of the following:
3.5.9.4 Apartments not designated as Build to Rent
Policy SPQHP33A
Apartment schemes not designated as build to rent may be required in their planning decision to offer for sale to the public a proportion of units (other than those covered by a Part V agreement), the proportion, up to 100%, to be determined taking into consideration the demand in the area, particularly the demand to purchase an apartment to move to from a larger dwelling.

I’m drawing this to your attention as you may wish to take a similar step, i.e. widening the guidelines to also apply to apartments and terraced housing, either generally or where there is a need to ensure greater supply for purchase.

I would be happy to discuss the above with you or your officials at any time.

Best regards,

Cllr. David Healy

+353 87 6178852
54, Páirc Éabhóra,
Beann Éadair,
www.davidhealy.com
@davidhealyv