Written answers

Wednesday, 26 February 2025

Department of Housing, Planning, and Local Government

Departmental Investigations

Photo of Pádraig RicePádraig Rice (Cork South-Central, Social Democrats)
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181. To ask the Minister for Housing, Planning, and Local Government if he will establish an independent investigation into the trading of 44 homes for profit in Cork in view of the fact that they were grant aided under section 20 of the Housing (Amendment) Act 1948 on the condition that they would not be sold (details supplied); and if he will make a statement on the matter. [8331/25]

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
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I refer to the reply to Dáil Question No. 834 of 9 September 2024 which was provided by my colleague, Minister Darragh O’Brien TD, regarding the situation at Somerton Park, Ballinlough Road, Cork and I can confirm that the position remains unchanged.

The established policy and legal framework governing Somerton Park remains in effect.

Somerton Park, Ballinlough Road, Cork consists of 44 houses built circa 1950 by the Lee Public Utility Society. According to the leases, the houses were provided under the Housing of the Working Classes Acts 1890 to 1958. They were grant aided under section 20 of the Housing (Amendment) Act 1948 on condition that the houses would not be sold they would only be let to working class people at a rent and subject to conditions as would be approved by the Minister

Section 20 was repealed by a 1962 Housing Act which did not contain a provision to continue in force the section 20 undertakings.

  • In 1975 the society converted itself into a private limited company called Lee Estates Co. Ltd. This company was wound up in April, 1976 with the assets of the company (being the houses located at Somerton Park) transferred to four individuals. Some of these individuals sought an increase in rents from the tenants of some of the houses.
  • In 1976 the Department asked landlords for assurance that the houses would continue to be let at a rent approved by the Minister.

  • Notices to Quit were served on some tenants followed by Ejectment Proceedings in March, 1978.
  • A tenant took a test High Court action successfully in 1984, the outcome of which was applied to the entire estate. The effect of the judgement was that the undertaking given under section 20 continues in force and the Minister's consent is required to any increases in the rents of the houses.

    A provision was included in the Landlord and Tenant (Amendment) Act 1980 to enable the Minister to consent to the sale of the houses, including retrospectively. (Section 75)The Attorney General’s Office was previously consulted about how these cases should be dealt with. It was decided that the role of the Minister should be to:

    • consent to sales to the tenants where the tenant wishes to purchase, the price is reasonable and the vendor is entitled to sell
    • approve a rent increase if agreed between the tenant and landlord or if determined by the Courts
    • give retrospective consent to sales to the landlords where the security of tenure of the tenants can be guaranteed.
    A number of the houses were subsequently sold to the tenants at reasonable prices to which previous Ministers consented. In addition, approval to the sale of one property was provided in February 2024 on foot of a Circuit Court settlement.

    I will continue to keep this matter under review and consider, as appropriate, whether any further high-level assessment of the legal and statutory basis underpinning these matters may be warranted in due course.

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