Hundreds of apartments are to be built near Shankill in south Dublin for renting to low- and middle-income workers at 30 per cent below market rates, under the first "cost rental" scheme from the Land Development Agency (LDA).
Up to 600 homes will be built at lands surrounding Shanganagh Castle, a former juvenile prison owned by Dún Laoghaire Rathdown County Council.
At least 300 of the homes will be “cost rental” accommodation with rents of approximately €1,300 a month for a two-bedroom apartment, compared to a local market rate of €1,850, according to the LDA, the State agency set up last year to oversee the construction of social and private housing on public land.
Another 200 homes will be used for social housing, with the remaining homes expected for be offered for sale.
Under the cost rental scheme rents are linked to the cost of providing the housing, and not market rates. Workers earning up to €50,000, or €75,000 as a couple, would be eligible for the scheme.
The LDA is determining the funding required for the scheme, but hopes to have that in place by the end of this year. Following a grant of planning permission, construction of the full scheme is expected to take 36 months, but the first homes are expected to be available within 18 months.