Developers surge to offload sites to Land Development Agency

Cash-strapped builders and landowners have flocked to a Land Development Agency (LDA) scheme which permits them to dump massive housing websites they’ve been unable to finish.

LDA chief government John Coleman mentioned the State physique had seen a “huge volume” of submissions for inclusion in Project Tosaigh, a €1.25 billion scheme to purchase land with planning permission or properties the place growth has stalled largely as a result of an absence of finance.

The scheme, which opened for submissions in November, is targeted on websites with the potential for greater than 150 properties. The LDA should purchase websites and housing or enter right into a “forward purchase agreement” to amass the properties with fee on completion.

“We have received in excess of 100 different proposals, so there was a very strong interest in Project Tosaigh and I think that underlines the need for it,” Mr Coleman mentioned. “Because we got a huge volume of submissions, we focused on those that have nearer-term delivery potential.”

The LDA was finalising discussions with numerous homebuilders throughout the better Dublin space, in addition to in Cork, Waterford, Meath and Kildare with a view to offering properties this 12 months for reasonably priced buy or cost-rental schemes. These homes and flats can be the primary properties delivered by the LDA, Mr Coleman mentioned, and can be in “better value” places.

“Obviously we’re not targeting very expensive, higher-end properties. We want to make them affordable for people, that’s the whole point of it – it’s entirely focused on affordable housing.”

Mr Coleman rejected strategies that the scheme was a “bailout” for overextended builders.

“The areas we are targeting and the nature of the developments certainly don’t leave massive amounts of profit for developers in terms of the prices we are looking at.”

While prices will fluctuate nationally, a cost-rental residence may value the State within the area of €350,000. “We will drive the value-for-money piece as strongly as we can,” he mentioned. “The spend will approximate the market value of homes but we will drive for discounts where we can because we’re a bulk purchaser.”

Separately, the LDA has lodged functions for greater than 2,300 properties on State lands in current weeks on websites in Dundrum, Balbriggan, Skerries and Naas. Construction is predicted to begin this 12 months on LDA websites at Shanganagh in south Dublin and St Kevin’s Hospital in Cork.

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