Housing Update: 2015 Rents in Galway soaring following Minister Kelly’s Housing Package and not a single extra social house to be constructed.
Minister Kelly’s recent housing package has made absolutely no provision for the construction of social housing in Galway.
This is a City with over 5,000 households on the housing waiting list giving a conservative estimate of 15,000 people on this list. The waiting time I understand is from 2001 for a two bed-roomed house.
The Council has not built one single social housing unit since 2009. We have finally been given sanction to build 14 housing units next year and a promise that sanction will be forthcoming sometime before the end of the year for 55 more and that is it!
Once again the only game in town is the Housing Assistance Payment (HAP) which is currently being rolled out and for which the Council Budget had to include a figure of 279,000 Euro to roll it out. (60,000 of which will be refunded)
Under this scheme once the housing applicant receives this payment his/her name will be removed from the housing waiting list and for those on social welfare payments it is intended to deduct the payment at sourc!
The Council’s roll is to roll out the scheme and in addition to paying the tenant’s contribution to also pay the differential payment direct to the landlord because of course the rent will be assessed at market level.
Further since the Minister’s Housing Package announcement I have received emails from private tenants confirming that they have receive notification that their rent is to rise, in Galway City in one case by 40% from 1,000 to 1400 Euro and just outside Galway from 650 to 1,000 Euro!
Further I understand it is Threshold’s experience in Galway that rents have been significantly increasing over the last few weeks in anticipation of the Minister’s announcement.