The Banking and Payments Federation of Ireland is to attend a meeting of Donegal County Council’s Defective Concrete Blocks Committee to discuss number of pressing issues regarding the government’s DCB programme.
100% Redress: Cllr Joy Beard says it’s a critical engagement that must address what she says is a fundamental failure at the heart of the state remediation scheme.
The BPFI chairs the multi-party stakeholder group that includes Insurance Ireland, Engineers Ireland, the Law Society, the Institute of Professional Auctioneers & Valuers, and the main lending institutions.
Campaigners say this group is actively working to identify realistic, workable solutions around some of the most pressing unresolved issues — particularly the sale, mortgageability, and insurance of homes that are only partially remediated under the scheme, and the wider difficulties many homeowners continue to face navigating it.
Cllr Beard says the BPFI has been clear that future mortgageability is contingent on engineers being able to certify homes following remediation.
Engineers Ireland, in turn, has confirmed that many of its members do not regard IS 465 as fit for purpose. When those two positions are combined, the conclusion is not a matter of opinion, it is fact: the Government scheme does not restore mortgageable condition.
The scheme may facilitate works, she concludes, but it does not deliver a normal, functioning home that can be mortgaged, insured, sold or refinanced like any other property in the State.
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Cllr Beard’s statement in full –
Scheme Fails to Restore Mortgageable Homes, Says Banking and Engineering Evidence
Cllr Joy Beard has confirmed that the Defective Concrete Blocks (DCB) Committee will meet with the Banking & Payments Federation Ireland (BPFI) at its upcoming January meeting, describing it as a critical engagement that must now confront a fundamental failure at the heart of the State remediation scheme.
Cllr Beard said that when the stated positions of the banking and engineering sectors are placed side by side, the conclusion is unavoidable. “The BPFI has been clear that future mortgageability is contingent on engineers being able to certify homes following remediation. Engineers Ireland, in turn, has confirmed that many of its members do not regard IS 465 as fit for purpose. When those two positions are combined, the conclusion is not a matter of opinion, it is fact: the Government scheme does not restore mortgageable condition.
” She said that while families are engaging with the scheme in good faith, often under pressure due to serious safety, mould and damp concerns, the outcomes being delivered fall well short of what homeowners were promised. “The scheme may facilitate works, but it does not deliver a normal, functioning home that can be mortgaged, insured, sold or refinanced like any other property in the State.
That is the reality facing families on the ground.” Cllr Beard acknowledged the extensive work already undertaken across the sector to highlight these issues. “The multi-stakeholder group, which includes the main banks, Insurance Ireland, the Law Society, valuers, auctioneers and estate agents, has made a detailed and robust submission to the NSAI review of IS 465. That submission sets out, in very practical terms, how the current standard fails to align with real-world lending, insurance, conveyancing and valuation requirements.” She said that the establishment of a working group, and now a technical subgroup examining mortgageability where deleterious materials remain, represents a significant breakthrough.
“These groups did not emerge by accident. They came about because of persistent pressure from homeowners and stakeholders, despite early efforts by the Department of Housing to undermine that engagement. Their establishment reflects the scale and seriousness of the problem.” Cllr Beard said unresolved financial pressures remain a major concern. “Many homeowners are being forced to borrow significant sums to complete works, particularly where grant caps are reached or foundations must be replaced, which are excluded from the scheme. This places families under enormous financial strain, even as they comply fully with the process.”
She also highlighted continuing market uncertainty following remediation. “Even after remediation, many homes still contain deleterious materials, particularly those remediated under Options 2 to 5. Foundations are often left in situ. Homeowners are understandably concerned about long-term market value and sellability, and buyers remain cautious. This uncertainty is now having a wider impact on confidence in the Donegal property market.”
She said the problem is being compounded by fragmented governance. “At present, the Irish Standard sits under Enterprise, the scheme under Housing, while banks, insurers, engineers and valuers operate in the real world with no joined-up structure between them. Homeowners are caught in the middle, facing contradictory requirements and ongoing confusion around insurance, certification and future lending.” Cllr Beard said she intends to raise key issues directly with BPFI at the upcoming meeting.
“A proposal was previously brought forward by BPFI to the then Minister for Housing seeking bespoke financial supports for affected homeowners, but it did not progress. Understanding why that proposal stalled is essential if workable solutions are to be developed.”
She concluded by calling for decisive Government action. “The evidence is now overwhelming. The scheme, as currently designed and underpinned by IS 465, does not restore mortgageable homes. The Government must act on the findings of the IS 465 review and implement the necessary changes so that affected homes are treated the same as every other property in the country. Anything less leaves families trapped in an unresolved financial and housing limbo.”
