NAMA bulldozing properties shows dire mistakes of past

The ESRI Report today that shows one-third of mortgage holders could be in negative equity by the end of the year comes on the back of reports that 60,000 households struggle to pay their mortgage and shows the need for a Home Owner Support Scheme similar to the one Fine Gael has proposed according to Party Housing Spokesman, Terence Flanagan TD.

Deputy Flanagan also said that media reports that NAMA is preparing to demolish half completed residential and commercial buildings in Ireland highlights the follies of the last 13 years.

“With so many in negative equity, joblessness at all time highs and 60,000 homeowners struggling to pay their mortgage, the pressing need for a Home Owner Support Scheme has never been greater.

“Fianna Fáil and the Greens have announced a toothless talking shop when an effective plan is ready to roll. The Fine Gael Homeowner Support Scheme would allow NAMA to take an equity share in a property after negotiating a write-down in the outstanding debt with the relevant financial institution. The property owner would then service his or her remaining share of the debt and pay a rental fee to NAMA for the equity share taken by the Agency. The homeowner will have an option to buy back the NAMA equity share and if the property is sold, NAMA will receive its share of the sale.

“Reports of NAMA bulldozing properties also leave the distinct impression that lessons have not been learned from the collapse of the property bubble. Recent media reports informed us that there are 345,000 homes and apartments in Ireland currently vacant.

“Despite these huge numbers of vacant housing, many local authorities are still granting permission for housing in areas where there is oversupply. At the same time, NAMA is preparing to demolish houses.

“Never again, must we allow residential property to be built in areas were there are no facilities. Instead, I want to see:

• A radical overhaul of our planning systems. No longer can we allow councils to make up their own rules regarding the granting of planning permission;
• The Minister for the Environment must introduce mandatory planning rules for all councils;
• The Minister must instruct council planning departments to refuse planning applications for housing in areas where there is oversupply.”