The Workers’ Party have called on Minister Simon Coveney to alter his proposed distressed mortgage ‘lease back’ plan to a fully public model, in order to cut out the profits of the landlord in the middle.
Under the proposals released by Minister Coveney this morning, households with distressed mortgages will be offered an opportunity to be bought out by private landlords, who in turn will agree to lease the property back to the residents as social housing.
Speaking following the announcement of the plan by Minister Coveney, Cllr. Éilis Ryan (Workers’ Party, North Inner City), said:
“The Workers’ Party are proposing a scheme in which a state company is established to purchase these same homes, and rent them back to the former mortgage holders with a secure lifetime lease, and at a sustainable rent to the state.
“In this way, the state increases its stock of decent public housing, and receives a revenue stream in the form of a reasonable rent.”
Cllr. Ryan said Minister Coveney’s plan by contrast adds in costly private sector profits without any justification or need, saying.“Ours is a sensible plan. Minister Coveney’s alternative, by contrast, is financial madness. Why bring in a private investor who will inevitably add a profit margin into the rent at which he leases the properties to the state?”
“Our government says it is about building housing. Why not start by buying up housing that’s already there?”