Leitrim councillor calls for review of Croí Cónaithe as international bidders price locals out

People are being outbid in online auctions for houses by individuals who have never set foot in the country, a meeting of Leitrim County Council heard.

Cllr Cormac Flynn told the meeting that while the Vacant Property Refurbishment Grant, or Croí Cónaithe, is a welcome development, certain aspects of its implementation are having unintended negative effects on the intended groups, while simultaneously providing government funding to people who have never lived in, nor have any connection to, the state.

He called on the Council to write to the Minister for Housing, James Browne TD, requesting an urgent review of the eligibility criteria for Croí Cónaithe.

“Anyone, regardless of where they live on the planet, can qualify for the maximum grant as it stands at €70,000,” said Cllr Flynn.

He informed members of one contractor who has eight contracts under the grant scheme, noting that seven of the eight recipients have never lived in Ireland. 

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He also mentioned that a different contractor was approached to price a cottage under the scheme. The person who approached him holds a passport from a second-world country, resides elsewhere, and outbid the property owner’s own son in an online auction.

“Personally, I feel that only those who reside or pay tax in Ireland should qualify for the grant, or the applicant must prove a familial link to the area. 

Locals who intend to live here are being priced out of the market by people who already have homes and are living in other parts of the world, they’re being outbid on online international auctions,” he said.

While there is a requirement that the finished house must be lived in or rented for 10 years, Cllr Flynn said this is not happening “in the way it’s intended to happen.”

He described the situation as a “poor bit of design” in the legislation that needs to be addressed. 

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“These people have homes and are coming here, taking homes that are no longer available to local people, and are bidding on online auctions and outpricing people here,” he added.

Cllr Eddie Mitchell commented that he supports the review but noted that the Croí Cónaithe scheme has a commercial element that allows speculators to buy properties and place them in the local rental market. “I think that works, we have to be careful. If it’s going to be successful, we need the money to flow into the county,” he said.

Cllr Flynn added that there are “too many grey areas” in the situation. He expressed sympathy for young people trying to get on the property ladder, who see an opportunity with a house becoming available only for it to be bought via an online auction by someone who has never been in the country.

“It’s a good scheme, but that’s not what it’s supposed to be used for,” he said.

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