Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

The provision of affordable housing, including setting of the sale price, is primarily a matter for individual housing authorities. The sale price of an affordable home is determined largely by its cost. Where authorities consider it appropriate in the context of reduced open market prices and the continuing need to ensure value for money outcomes, they have the option to reduce the sale price of any affordable house by further subsidisation utilising Part V moneys, clawback or other internal capital receipts on hand. My Department issued comprehensive guidance to local authorities in April 2009 outlining a range of measures that could be considered in dealing with the build-up of unsold affordable homes.

Local authorities were advised that in cases where they believe price is the main factor inhibiting sale and where there would be a prospect of achieving a sale if additional discount was provided, they should consider the option of further discounting. My Department does not collect information on the number of cases in which local authorities chose this option because it is for local authorities themselves to decide, given their unique position to make judgments on market conditions in their respective functional areas, the most appropriate option to be pursued in individual cases.

See this speech in context