Meet couples who've found homes via the Affordable Housing Scheme

Shauna O'Sullivan and Isaac Power, Heathfield, Ballincollig, Cork.

If you had told 24-year-old Shauna O’Sullivan and 27-year-old Isaac Power a year ago that by autumn this year, they’d be living in a new three-bedroom house in Ballincollig, they’d “have laughed at you”.

The fund accountant and naval armourer “really wanted to buy in Ballincollig but everything was too expensive,“ says Shauna. “But then last October I saw on Facebook that affordable homes were coming on stream in Heathfield and looked into what that meant and whether we were eligible and it looked like we were”.

She spent 2-3 weeks before the scheme’s affordable housing scheme portal went live, gathering the necessary paperwork.

“We got mortgage approval in principal in a matter of days with the AIB and then it meant gathering lots of information like bank statements, credit union statements and pay slips. There was duplication between what the banks needed and Cork City Council and so I found the paperwork side all very manageable, “says Shauna.

She uploaded the information to the portal on November 14 last year and on December 11 discovered that they had been approved for a new three bed semi. The ‘Help to Buy’ scheme paid more than half their required deposit while the ‘Affordable Housing’ scheme plugged the gap between their mortgage limit and the price of the Murnane and O’Shea home.

The day after approval, the couple had selected their house from a list of possible options in the scheme.

“I love the space that we have, particularly when working from home. There’s also a very decent garden and we are looking out on a large green which is lovely,” Shauna says.

Isaac added: “Neither mine nor Shauna’s friends knew that the Affordable Housing Scheme and Help To Buy are there to bridge the gap between what you can borrow from banks and current house prices”.

“People don’t realise it’s there for middle earners to buy private homes, “ agrees Shauna. “They think it’s for social homes and it’s not, it’s a fantastic scheme for people who want to buy privately,” she says.

The couple moved in last month, three days after getting their keys. The three days beforehand had been busy as Shauna’s dad had lain wooden floors in the living room and bedrooms. The couple had bought furniture and white goods in the January sales.

“If you told me last year that I would be living with Isaac in our new three bed home in Ballincollig, I’d have laughed at you,” says Shauna.

Joe and Mags Finnegan, Newton Heights, Mayfield.

Having paid rent for decades, Joe Finnegan says he’s “still in shock” that he and his wife, Mags are paying their own mortgage, thanks to the Affordable Housing Scheme.

“We absolutely love the newness of the house. But above all, we love that everything in this house is our own and that we’re not forking out every month to pay someone else’s mortgage,” says the 49-year-old shift worker.

Joe and Mags rented in Glanmire for 16 years but in the final years, their landlord began gently warning that he needed the house for his own children. Joe and Mags’ 16-year-old daughter Abbie was in school locally and they didn’t want to uproot her. But monthly rents for two-beds in Glanmire had soared to over €2,400.

“We’re a one income family. I really felt I was in a catch 22; doing overtime to build savings but then that extra income put us outside any help from the council. Or so I thought until the affordable housing scheme popped up on my phone,” he said. “I never knew there was a council scheme to help people buy their own private homes. So I was on the application straight away: looking at criteria and contacting banks. I knew this was our last chance at my age”.

Joe was already familiar with ‘Help to Buy scheme’ for first time buyers but that alone wouldn’t enable him to buy a home in Glanmire as two bed room houses were selling at around €350,000. It was a combination of the ‘Help to Buy’ and the Affordable Housing Scheme that helped him bridge the gap between his mortgage approval limit and the 3-bedroom homes at Newton Heights in Mayfield. He now has a 20 year mortgage on the house.

“I applied for three different affordable housing schemes in Blarney, Montenotte and then Boherboy Road. To be honest, I had applied so often that by the time I applied for this house, it was easy, I had done the uploading of wage and bank details so often,” he said.

Joe and Mags are now living 10 minutes from Joe’s work, from Abbie’s school and from Mags’ family. The bus stop is located outside their door.

“I’d strongly recommend people to keep an eye out for affordable housing schemes if you’re a middle income earner. Just go for it!  It doesn’t cost a penny to apply. I’m nearly 50 and have been renting all my life. We had begun to give up on ever owning our own home but we’ve done it. After all these years, this is our own home”.

FAQs:

What is the Affordable Purchase Scheme? 

The Local Authority Affordable Purchase Scheme is aimed at supporting middle income earners to buy their own home in private housing developments and is designed to help bridge the gap between what buyers can afford to pay and the price of the house.

Cork City’s most recent affordable housing schemes launched 185 new homes for affordable purchasers:

• 35 homes in Ardrostig, Bishopstown,
• 70 homes in Heathfield, Ballincollig,
• 64 homes in Danesfort, White’s Cross
• and most recently, 16 homes in Seaberry Drive, Grange.

Cork City Council will be advertising our next scheme of 45 houses in Lehenaghmore in Q4 of 2024. Affordable housing schemes are advertised on social media as they become available, so please follow us on FB / Instagram for information on upcoming schemes. 

To date across all schemes delivered, there are 169 families now living in their new affordable homes, as a result of this scheme.

Is the scheme for you?

Up to 26% of people who bought homes in the three most recent private housing development schemes worked in Cork-based multinational companies, another 24% worked in the public sector (i.e teachers, members of the Defence Forces ) and 20% worked in healthcare ( nurses, care assistants etc).   

How does the Affordable Housing Scheme work in practice?

Cork City Council offers you the chance to buy a newly built private home at a price lower than its open market value. In return, Cork City Council will take a percentage equity share in the home, equal to the difference between the  market value of the house and the reduced price paid by you, the purchaser. For example, if you purchase a home at a 20% reduction, Cork City Council takes a 20% equity share in your home. Homeowners can choose to repay some, or all of the equity share, at any time following their acquisition of the property.

How much do I pay for an affordable home?

Our affordable schemes have maximum selling prices, but the price you pay is based on your income and purchasing power, with the council bridging the gap for you, subject to a minimum purchase price.

Every scheme advertises maximum income limits to be eligible. For example, the average household income for successful applicants for our three-bedroom homes was €73,000 per annum (gross). We encourage applicants to apply and be assessed for our schemes if they feel they may qualify. We have an online portal and website for every scheme which provides all of the information you need.

 Do I need mortgage approval to apply?

Applicants need to show that they can qualify for a mortgage with any main lender and must have sufficient savings to pay a 10% deposit on an affordable home.

Who can apply?

Applicants must also be over 18 years of age, be a first-time buyer or qualify under the Fresh Start principle and have a right to reside indefinitely in the State. For a full list of eligibility criteria, along with answers to frequently asked questions, please visit our website, www.corkcity.ie or email us at affordablehousing@corkcity.ie.