Income earners of €90K are in a 'property limbo'
The income gap between those who qualify for council housing and those who can afford a mortgage in metropolitan Cork has widened at an alarming rate, meaning many more people are now caught in a property limbo.
A report by Cork County Council's director of planning, Michael Lynch, showed that a household with an annual income of €44,000 will qualify for social housing but, in many areas on the periphery of the city, a household income has to be in the region of €90,000 to qualify for a mortgage.
The stark report has shocked county councillors who are seeking an urgent meeting with housing minister Eoghan Murphy to fast-track affordable housing schemes.
The schemes cater for those whose income is over the social housing threshold but under the amount which would secure a mortgage in certain areas.
The schemes also offer people homes at a cost considerably less than the market price.
The government signalled last year plans to reactivate the affordable housing scheme and the council submitted proposals for new schemes in Carrigaline, Mallow, Midleton, Kinsale and Clonakilty but is still waiting for government approval to proceed.
In his report, Mr Lynch said the lack of housing supply is 'generating unsustainable levels of competition across all strata of the housing market,' including the rental sector. He delivered the report to councillors yesterday, in response to a question from Cllr Kevin Murphy, the Fine Gael leader on the council.
Council chief executive, Tim Lucey, said the research carried out by Mr Lynch and his staff had been significant.
"Rental accommodation is now becoming unaffordable for some people at this time as well," he said, added: "There is merit in the council meeting the minister," Mr Lucey said.
Cllr Murphy described the increasing number of people who fall between the two stools as "the new poor".
Mr Lynch said it was estimated that 1,250 houses were constructed in the county council area of jurisdiction last year and a target has been set to have 3,000 built annually between now and 2040.
However, at present, demand is far outstripping supply.
Cllr Murphy, meanwhile, complained the council received only a small percentage of funding, from Government, on landbanks purchased in 2003. But Cllr Frank O'Flynn (FF) said: "You met with Minister Murphy last Saturday (at the Fine Gael Ard Fheis), surely you told him!"
Kinsale-based Cllr Murphy said the lack of affordability was impacting on the supply of houses and the only way to tackle it was through the provision of more social and affordable housing.
Cllr Seamus McGrath (FF) agreed with Cllr Murphy and other colleagues that the time had come to meet with Mr Murphy in an effort to tackle the housing crisis in Cork. "I'm greatly concerned about the current lack of affordable housing. There's a huge cohort of people whose needs are not being addressed. Unfortunately, I've no great hope for them in the short term."
The council's director of housing Maurice Manning recently explained the five locations identified for affordable housing had been chosen as they were towns where it was hardest for many people to pay property market values.
