Local authorities can spend up to €492k per unit for social housing

Cost guidelines from the Department of Housing dictate that local authorities can spend a maximum of €492,800 per unit when building social housing.

Figures released by South Dublin County Council show that the maximum all-in costs per unit for new build social housing schemes range from €377,200 for a one-bed house to €492,800 for a three-bed apartment.

Costs for two-bed, three-bed and four-bed houses are capped at €406,600, €422,500 and €466,800 per unit respectively.

Guide costs for one and two-bed apartments are set at €427,600 respectively €455,900.

The council released these figures in response to a question put forward by Cllr Francis Timmons (Ind) at the full council meeting on July 14, asking for a report into “the cost of building a one-, two-, three- and four-bed homes in SDCC and the alternative cost of buying same on the open market to ensure value for money for the taxpayer”.

“SDCC strives to ensure value for money in all social housing building projects to provide housing accommodation for all needs,” the reply from SDCC’s director of housing Elaine Leech read.

“It is difficult to compare local authoritity housing delivery with private provision on the open market as numerous factors have an impact on the open market value of a property such as location, property size/specification, alterations made to properties, additional fees associated with a purchase etc.

Ms Leech also said that there are “several characteristics applicable to the delivery of social housing by the local authority which will not apply to private provision”.

“Issues such as the application of public procurement rules and the impact of policy shifts, application of differing standards in the use of construction materials, etc.

“The one-off nature of many local authority housing construction contracts also reduces considerably the scope for economies of scale across project delivery,” she added.

Funded by the Local Democracy Reporting Scheme.