Council may have to sell housing stock at a loss
By Kernan Andrews
More than 70 houses belonging to the Galway City Council remain unsold after months on the open market, but they cannot be turned into social houses for rent, and if sold would end up being sold at a loss.
The Galway City Council has 90 affordable houses on its books but has not been able to sell them in the current economic climate as they are no longer regarded as affordable.
The houses were bought at the height of the property boom but the fact they remain unsold create difficulties in that they cost money to maintain but do not provide any financial return to the local authority.
As a result City Hall decided to put them on the open market for sale. Potential buyers did not have to meet the normal requirement of those seeking affordable housing, they only needed to be a first time buyer.
Only 17 houses (in An Leargan, Western Distributor Road; Reilean, Roscam; and Coill Tire, Doughiska) attracted buyers. At Monday’s city council meeting, councillors agreed to let these houses be sold but also debated what could be done to sell the remaining 73.
Independent councillor Catherine Connolly said the council should make the houses into social units. This would allow the houses to be leased to potential tenants and provide a source of revenue as well as a way to tackle the housing list. However city manager Joe MacGrath said the Government will not provide the funding to allow the council to do this.
Fine Gael councillor Brian Walsh called on the council to produce a list of the houses it has on its books, the price originally paid for them, and their current price. He also said that if they have to be put on the open market and sold at a loss then “so be it”.
“The council cannot continue to maintain and insure these houses that are lying empty,” he said, “as in the long run they could become damaged and it will cost us more to maintain them.”
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