Log house firm seeks HomeBond approval

A Waterford-based company which builds log houses has been unable to obtain HomeBond warranties for its homes, despite the fact that the materials used for construction are certified by the Finnish government.

GlenBuild director Eleanor Bell said her company cannot succeed without HomeBond's approval. "We are building homes that cost 50 per cent less than more conventional homes," said Ms Bell. "They are perfect for young couples, for people starting out. But without HomeBond, these people have to hire an engineer to inspect the place before they can get a mortgage, and that's expensive. We would get 50 times more business if we had HomeBond."

Many mortgage companies require HomeBond warranties before they will provide mortgages. Thus, without HomeBond approval, selling large numbers of homes can be difficult.

Ms Bell said that the only reason HomeBond has not approved GlenBuild's homes is because the log houses, with their low prices, pose a threat to conventional builders.

HomeBond is a privately-owned warranty organisation that provides 10-year guarantees against major structural damage in new homes. Founded in 1978, HomeBond's members are builders and developers. Once builders become members, they register all of their new construction with HomeBond, which then inspects it and issues warranties. Many lenders require HomeBond before they will issue a mortgage on a new house. Developers must show that their projects have met Irish building standards to become a member. "We really want certification on new homes from this country before we offer a warranty," said Dr Eugene Farrell, HomeBond's director. "It rains and rains here and we have to make sure houses we insure can stand up to that. A Finnish certification doesn't tell me that because I don't know anything about the climate in Finland."

GlenBuild's houses are built of five and six-inch thick weatherproofed cedar logs, and have a building cost of about £47 per sq ft. The average new house in Dublin has a building cost of £120 per sq ft, while similar houses in Cork work out at around £100 per sq ft. The company is erecting log homes on private sites and in Glenshelane Park in Co Wicklow.

Dr Farrell said that he has seen no Finnish certification for any kind of housing. Ms Bell said that she submitted the Finnish certification for the log homes along with GlenBuild's application to HomeBond, for which she received a letter that said "HomeBond do not cover this type of construction".

According to Ms Bell, Dr Farrell told her that getting certification from the Irish Aggregate Board (IAB) would improve her chances of getting HomeBond approval.

The IAB, which tests and reviews all new construction products and processes to make sure they are suitable for use in Ireland, would require GlenBuild to pay £10,000 to perform a Weather Tightening Test on one of the finished houses. "Houses just like these have been standing up to all kinds of weather for more than 500 years in Finland, we don't need a test to prove that," Ms Bell said. "Besides, what's the point of joining the EU if we're not going to use their standards? The logs for these homes are being exported all over Europe. It rains all over Europe."

However, Ms Bell said this approach is "nothing but protectionism". "It seems to me that the conventional building trade here has a monopoly. We would never be a big threat to them. But apparently, they are worried."