Traffic Transport and Road Safety Associates Ltd. (TTRSA)

In February 2010, we reported on the 'problems of unfinished development' in Ireland.  Last week, the Irish Independent reportedthat based on the first official government estimate, 'the number of ghost housing estates stands at 2,700, up from an intial estimate of 621 earlier this year.

It is understood that a report outlining the solution to the estates is going to be published shortly, but that in some cases the bulldozers may be moving in at the taxpayers expense.  We have witnessed a large increase in the number of planning applications seeking both extensions of time and retention of part constructed developments over recent weeks, although with the numbers of properties involved, and the rate of decay of unfinished dwellings, local authorities must be beginning to question the logic of granting such permissions, and if we being to see planning refusals, the headache for both lending institutions and NAMA can only intensify as the value of securities for loans diminishes still further. 

In a parallel but unconnected report, the Irish Independent  also detailedthe extent of local authorities involvement in the property development market, particularly in relation to the provision of housing, is also becoming clear with the authorities being far from immune when it comes to development related losses. The 'Housing Finance Agency' which borrows money on behalf of local authorities has confirmed that loans totalling €263 million have been 'renegotiated', local authorities in effect being unable to pay the loan on the due date.  It is further reported that local authorities currently own some 2,000 hectares of development land with outstanding loans of €650 million (or approximately €132,000 per acre), and that much of the land is likely to be transferred to the Housing and Sustainable Communities Agency, established in May 2010.  Overzoning of housing land over the last decade is reported to equate to 31,633 hectares.

TTRSA provide a range of services related to the completion of estates, including Stage 3 Road Safety Audits that many Local Authorities are now requiring before taking an estate in charge.  To obtain a quote for a Stage 3 Road Safety Audit, call Matt Steele today on 089 4209704.

11 October 2010

News update - On 1st November 2010, Dublin City Council decided to transfer lands at Ayrefield off the Malahide Road, Belcamp Lane and at the Belmayne development, to the Housing and Sustainable Communities Agency.  It is reported that the council was struggling to service mounting interest payments.