Tenants in position to sue city council over house prices

CORK City Council admitted last night that it may be open to a High Court challenge from tenants trying to buy their homes at bargain 1990s prices.

The council said 91 cases are "pending determination".

But there are also a number of other cases in which the council says it is confident that no contract for sale exists.

Where such disputes exist, it will be a matter for the courts to resolve, the council said. The details emerged at a meeting of the council's housing committee.

Labour Cllr Ciarán Lynch sought the information following a High Court ruling on similar issues in Dublin.

The High Court ruled on November 2 that four men Thomas McDonald, Gary Sinnott, John Dunleavy and Hermie Wallace have the right to buy their homes in Pearse Close, Sallynoggin on Dublin's southside from Dun Laoghaire Rathdown County Council at 1996 prices.

The two-bedroom semi-detached houses are currently worth €350,000.

But following the court ruling the men can expect to buy the homes for a knock-down €30,000.

Ms Justice Fidelma Macken ruled that any legal difficulties in relation to the men buying their houses had ended in 1995.

She said there was no sufficient explanation for further delays by the council in making an offer to the men to buy their homes.

She said that after 1995, the men's expectation of being able to buy their homes was legally capable of being fulfilled.

An expert valuer put the 1996 value of the houses at €37,000-40,000.

However, when the men factor in 30% local authority discounts and first-time buyer's grants, they will be able to buy the houses for €30,000.

Cllr Lynch said this ruling set a precedent that could affect Cork city council.

"The judgement has the potential to allow for a situation for council tenants in Cork who live in council flats and who tried to buy their homes in the 90s to now buy their homes at the prices they initially tried to buy them at."

The Department of the Environment is examining the High Court judgement.

"Pending completion of this examination, it is not possible for my department to speculate on the numbers of tenants who might be affected," Minister Dick Roche said.

Legislation is being drafted to allow local authorities sell their flats to tenants.

Cllr Lynch said the process must be fast-tracked.

"The delay is resulting in property prices for tenants going up," he said.