Audit finds Cork council bought 15 homes for 'significantly' more than their guideline price

Cork City Council’s chief executive said it was necessary to rescue the site from dereliction and anti-social behaviour

The council’s chief executive, Valerie O’Sullivan said: 'Several exceptional factors, in what had become a site for dereliction and anti-social behaviour as well as extensive infrastructural works, meant that the department supported Cork City Council's funding application.' Picture: Brian Lougheed

Acquiring 15 homes in Rochestown for significantly more than guideline prices was necessary to rescue a site from dereliction and anti-social behaviour, the city council’s chief executive has said.

Councillors voted in favour of the 'taking in charge' of Herbert Lawn estate at March's council meeting.

A report by the Local Government Audit Service notes that funding from the Department of Housing was provided to the council in March 2021 to purchase four houses in the estate; however, the formal acquisition was delayed due to issues with the water connection.

Having resolved the matters, the council formally acquired these houses in 2024 at the original agreed price of €320,000 each. 

In 2024, the council purchased an additional 15 houses in the same estate for €6.6m, an average cost of €440,000 per unit, which included “abnormal costs in the form of extensive civil works to replace some of the original infrastructure, as required by Uisce Éireann”.

This purchase was approved and funded by the department, though the auditor noted: “The average cost per unit of €440k significantly exceeded the department's maximum cost guidelines for social housing.” 

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The council’s chief executive, Valerie O’Sullivan said: “Several exceptional factors, in what had become a site for dereliction and anti-social behaviour as well as extensive infrastructural works, meant that the department supported Cork City Council's funding application.” 

Labour councillor for the area, Peter Horgan, said: “The acquisition of homes is a positive matter and the council is constrained by the market at present. These homes were vacant for so long which is an anti-social act in its own right.

“Government should be supporting councils in acquiring such properties by installing specific compulsory purchase and sales orders that allow a max limit of cost to the State if the owners are unwilling or lethargic about restoring such homes to use via the private market.”