Skip to main content

Banks Ignoring Ghost Estates...

Banks 'ignoring their ghost estates'...

BANKS are choosing to avoid the legal responsibility for cleaning up hundreds of unfinished housing estates.

Some 230 unfinished and dangerous estates have been abandoned by developers -- and banks which funded the projects have decided not to appoint receivers in an attempt to claw back the money.

If receivers were appointed the banks would be legally responsible for clearing up the mess.

Banks across the board have been blamed for refusing to address the problem.

According to Housing Minister Willie Penrose, in some cases efforts by local authorities to meet with banks and developers to discuss the problem had met with no response. Banks also failed to appoint people to deal with the issue.

He warned he would consider introducing legislation forcing the banks to take responsibility, or face the prospect of being fined.

"I'll be looking to the banks and developers to designate key contacts. I'm also examining the Derelict Sites Act to see if it needs to be amended," he said.

"If there is any reluctance or delay they will be hit with the act and other legislation where required.

A new report setting out how to deal with the problem of unfinished estates says there are 1,655 developments with outstanding works needed.

Of these, 230 have effectively been abandoned, where the developer or site owner is not contactable, where no receiver has been appointed and where there are "significant planning, building control compliance and public safety issues to be addressed".

One developer was traced to Australia where he is working as a carpenter, it emerged yesterday. No further details were available.

The Government says that work on making these sites safe will begin within weeks.

Some €1.5m has been allocated to 10 local authorities to complete basic safety works such as filling trenches, fencing-off building sites and installing manhole covers. Another €3.5m will be paid out over the coming months.

A National Co-ordination Committee -- made up of groups representing bankers, developers, the Department of the Environment and local authorities and chaired by Mr Penrose -- will manage the work at a local and national level.

The 'Resolving Ireland's Unfinished Housing Developments' report found that there are 23,250 complete and vacant units across the State, and another 9,976 dwellings nearing completion.

Bank of Ireland, one of the biggest lenders during the boom, said it would not comment. Irish Nationwide said its loans had been transferred to NAMA, while Ulster Bank added that each development was treated on a case-by-case basis.

There was no response from Anglo Irish Bank and AIB was unavailable for comment last night.


Report by Paul Melia Irish Independent

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

I fear a very different kind of property crash

While 80% of people over 40 own their own home just a third of adults under 40 do. This is disastrous for social solidarity and cohesion Changing this system of policymaking requires a government to act in a way that may be uncomfortable for some. Governments have a horizon of no more than five years, and the housing issue requires long-term planning. The Department of Public Expenditure and Reform was intended to tackle some of these problems. According to its website its remit is to “drive the delivery of better public services, living standards and infrastructure for the people of Ireland by enhancing governance, building capacity and delivering effectively”. So how is the challenge of delivering homes for people in 2024 and beyond going to be met? The extent of the problem is visible in the move by companies, including Ryanair, to buy properties to house staff. Ryanair has, justifiably, defended its right to do so. IPAV has long articulated its views on how to improve supply an...

Property Tycoon's Dolce Vita Ends...

Tycoon's dolce vita ends as art seized... THE Dublin city sheriff has seized an art collection and other valuables from the Ailesbury Road home of fallen property developer Bernard McNamara. The collection will be sold to help pay his debts. The sheriff, Brendan Walsh, is believed to have moved against the property developer within the past fortnight, calling to his salubrious Dublin 4 home acting on a court order to seize anything of value from his home to reimburse his creditors. The sheriff is believed to have taken paintings from the family home along with a small number of other items. The development marks a new low for Mr McNamara, once one of Ireland's richest men but who now owes €1.5bn . The property developer and former county councillor from Clare turned the building firm founded by his father Michael into one of the biggest in Ireland. He is the highest-profile former tycoon to date to be targeted by bailiffs, signalling just how far some of Ireland's billionai...