Levies add 6% to average home prices

MONEY-HUNGRY developers are forcing first-time buyers to fork out an extra €20,000 per property to cover the costs of levies imposed by councillors, a PD senator last night warned.

Senator John Dardis also claimed young families are being ripped-off by some management companies who spend money meant for services on wage claims.

The senator also expressed fears over the “cosy” relationship between senior planning officials who take up lucrative job offers at management companies after approving deals with them — a practice he described as a clear conflict of interest.

He raised concerns that development levies imposed by local authorities were being passed on to buyers adding 6% to the cost of an average home, driving the price up from €330,000 to €350,000.

“These levies, meant to be paid by developers, are being passed on directly to homebuyers, according to the Irish Home Builders’ Association, which represents the majority of builders,” he said.

Senator Dardis said new procedures need to be put in place to ensure such development levies are not passed onto homeowners.

The senator also hit out at the increased stress levels being endured by first-time buyers.

“Young families have enough stress already. They do not need the stress of dealing with a poorly run management company, to which they pay a large sum, but over which they feel they have little control.

“They do not need the stress of feeling caught in the middle of a difference of opinion between a developer and a local authority over who is responsible for infrastructure,” he told fellow Senators.

The concerns echo those raised by Labour leader Pat Rabbitte over “profiteering” management companies who fail to deliver on promises to new residents.

Keith Redmond, 33, who recently moved into a new home in Malahide with his fiancee is angry at being forced to hand over €1,250 a year to a management company.

“We get absolutely nothing for the money. There are no communal areas, not even any grass. We feel really ripped off. It’s a form rates by the backdoor, but we get nothing back.

“It is especially galling as we are next to a development built 15 years ago which is under full council control,” he said.