Funds ‘drive up cost of social housing by €50k per unit’

Housing body Respond said institutional funds were buying up stock in the hope of leasing it back to the state

Declan Dunne, CEO of Respond, says social housing has now become a commodity. Picture: Fergal Phillips

The average cost of delivering a new social home is set to increase by more than €50,000, the head of a housing body has warned.

Declan Dunne, the chief executive of Respond, said the popularity of social housing as an investment for institutional funds was driving up the average cost for his agency to deliver a home from €297,000 to nearly €350,000.

In recent years, there has been a spike in interest from private investors ...