Government denies legislation plan to facilitate `affordable housing schemes'

Government sources have rejected suggestions that it intends to bring in legislation to compel builders to sell houses at below market price to facilitate "affordable housing schemes".

On Wednesday the Minister for the Environment, Mr Dempsey, indicated that the new planning Bill, expected this summer, may be used to give teeth to the existing programme for social housing.

The Minister made his remarks at the inauguration of a new "affordable housing scheme" for the Docklands.

Yesterday builders indicated that they would consider a legal challenge to any moves to interfere with their rights to sell property at prices dictated by the market.

However, Government sources quickly moved to play down the possibility of a conflict between the Minister and builders. Citing the programme for social housing, which allows local authorities to request between 12 and 15 per cent of developments be devoted to "social housing", sources indicated that such a scheme was already adopted in the Dublin City Development Plan.

Under the scheme, local authorities may place conditions on planning permissions which provide for a section of cheaper housing in the bulk of the development, although this does not compel builders to sell below the market price.

In the Docklands case, the corporation and the Docklands authority have agreed to an extension of the local authority shared ownership scheme which envisages a percentage of all new housing developments being within reach of traditional communities in the area. "The moves would involve builders building some smaller houses, not selling the big houses below cost," said a source, adding that "this isn't new as you will see when the planning Bill is launched".

A spokesman for the Department of the Environment said he had not seen the content of the new Bill but social housing schemes were already operating as part of county development plans in many counties. "The Minister is determined that they will work and may be planning to bring in legislation to give them more clout, but he wouldn't interfere with constitutional rights. He couldn't even if he wanted to," he said.

Meanwhile the Minister for Housing and Urban Renewal, Mr Molloy, yesterday announced more than £1.7 million for voluntary housing schemes.

"Over £15 million has now been approved this year towards the provision of accommodation for renting to disadvantaged groups such as homeless persons, senior citizens and persons with disabilities," he said.