Council prepares to sell flats to tenants at discount

DUBLIN CITY Council has begun assessing its stock of more than 12,000 flats for suitability for sale to its tenants for the first time from next year.

As with tenants of council houses, those living in local authority flats in any part of the country will be able to buy their homes at a discount from their local authorities.

However, unlike house tenants, the approval of two-thirds of households in an estate will be needed for any sale of a flat to go through.

Tenants of council houses have been buying their homes from individual local authorities since the 1930s, with a national scheme for the sale of council houses in place since 1973.

However, tenants living in flat complexes have never been eligible to buy.

A tenant-purchase scheme for flats was introduced by Dublin Corporation, now Dublin City Council, in 1988, but was withdrawn after it was found to be unworkable.

The scheme collapsed because of a lack of legislation to deal with issues such as the ownership and maintenance of common areas including stairwells and gardens, and the protection of residents who chose not to buy and to remain tenants.

A new housing Bill, which is due to be signed into law by Minister for the Environment John Gormley early next year, allows for the sale of flats in estates deemed suitable by local authorities, but only where 65 per cent of tenants agree to flats being offered for sale and at least 30 per cent actually go through to purchase.

If the requisite number of purchasers do not sign up within three years, the scheme lapses for that particular flats complex and all residents remain local authority tenants.

If the sales do go through, a management company is established to run the complex and collect service charges. A building investment or sinking fund will also have to be set up. For those residents who choose to remain council tenants, their contributions will be borne by the council. The purchase price for the flats and the discount to be offered to tenants has yet to be determined.

As with council houses, buyers are likely to get a percentage discount for each year of their tenancy. However, several councillors have argued that an additional discount should be offered to compensate tenants who have been excluded from buying for so many years.

Purchasers who wish to sell on their flat within 20 years of buying will need the approval of the council. The council will also have first refusal on buying back the flat and if the flat is sold on the open market within the 20-year period, the seller will have to repay the council a percentage of the discount they had received.

Dublin City Council said not all its estates will be suitable for sale. Any which are the subject of regeneration plans will be excluded as will estates were there are significant “management issues” – ie those where these is persistent criminal or significant antisocial behaviour.

Senior citizens’ complexes are also likely to be excluded. County or city councillors will have the final say on whether each estate is offered for sale.

Dublin City Council is currently assessing its stock and hopes to have identified all suitable complexes by the end of this year and will begin holding information events for residents early next year.

The council said it would be ready to introduce a pilot scheme in the first half of next year, once Mr Gormley signs the commencement order, and that the scheme would be fully up and running by the end of next year.