Councils urged to halt purchases of turnkey homes, housing bodies capped

Government guidance is reportedly telling county councils and local authorities to stop buying turnkey properties, according to recent Sunday newspaper reports.

Kevin Doyle, executive editor of the Independent, explained on The Pat Kenny Show that councils competing with young couples and families for newly built three‑bedroom houses can drive up prices. He said the rental market remains highly profitable and suggested political considerations may be influencing the shift.

Doyle also noted that approved housing bodies, which receive funding from the Department of Housing, have been instructed to cap their building output. After constructing 4,200 homes last year, these bodies are being told that reaching around 5,000 units this year is sufficient, after which they should allow the private market to take a larger role.

The guidance appears to aim at increasing the supply of homes for sale on the private market rather than expanding social or affordable housing. Doyle questioned whether political parties might prefer to aid middle‑class buyers, such as young couples and “the bank of mum and dad,” to avoid backlash over social housing policy.

The reports raise questions about the government’s housing strategy and its impact on both the private and social sectors.

Source: Newstalk. Photo: K / Pexels.