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Family homeless in eviction after receiver refused council's offer to pay top price for property

The housing department says councils can offer to pay the upper range valuation where tenants are at risk of homelessness.

LOCAL AUTHORITIES CAN offer to buy properties if tenants are at risk of homelessness and are permitted to offer the “upper range” valuation, according to the Department of Housing. 

The comment comes after People Before Profit’s Richard Boyd Barrett told the Dáil yesterday of the case of family of four being evicted after the receiver Ernst and Young acting on behalf of a bank refused to buy the property. 

The mother and father and their two children were tenants in the house in the Dublin Rathdown area.

Speaking in the Dáil yesterday, Boyd Barrett outlined what happened to the family: 

“Shortly after 9 a.m., the sheriff and ten private security employees, accompanied by two gardaí, acting on behalf of Ernst & Young receivers and a bank – I am not sure which one – cruelly and ruthlessly evicted by force a family of four in the constituency of the Minister of State at the Department of Enterprise, Trade and Employment, Deputy [Neale] Richmond.

“This is a family of two working parents with two children who always paid the rent and did nothing wrong, yet Ernst & Young and a bank threw them out.

“I acknowledge I was in contact with the Minister and with Dún Laoghaire-Rathdown County Council, which requested Ernst & Young, as I did, to allow the council to buy the property, which it was willing to do, but Ernst & Young just said, “No”.

Today, as we speak, that family is sitting in a car, traumatised and in shock.

“The mother cannot speak and the children do not know where they will sleep tonight. It is absolutely disgusting that Ernst & Young and a bank would do that. What will the Government do about it?”

‘Shocking situation’

Responding, Finance Minister Michael McGrath said it sounded like a “shocking situation that should not have happened”.

“I will speak with the Minister on it and we will follow up,” he said. 

“If the council has made an offer to buy the property, that should be facilitated and that is what should happen. We will follow up on this specific case,” said McGrath. 

Speaking to The Journal, Boyd Barrett said the case highlights the lack of protections in place for renters who through no fault of their own are facing eviction.

As part of its measures to mitigate the lifting of the eviction ban, the government has said the tenant in situ scheme will be expanded with the Department of Housing to finance the purchases.

It has set a target for 1,500 properties to be acquired under the tenant in situ scheme, which sees councils step in and purchase a privately rented property where a landlord is looking to sell – representing a significant increase on the past target of 200 properties per year. 

Boyd Barrett said what this episode raises is concerns that you can have a receiver acting for a bank who can decide to just go ahead with an eviction even when an offer from the council, with support from the housing minister, is on the table.  

He said there is “very urgent action” needed to bring in first refusal for local authorities in such cases, stating that right now, there is no obligation on the landlord, receiver or bank to engage with the process at all.

The Journal asked Ernst and Young for a comment yesterday after the Dáil statement, with a spokesperson responding this afternoon, stating: 

“EY is unable to comment on client matters.”

The Housing Department told The Journal that it does not comment on an individual case, but said that “under the Tenant in Situ Scheme all Local Authorities, including Dun Laoghaire Rathdown, are permitted and indeed encouraged to purchase a home with tenants in situ where those tenants are at risk of homelessness and where the landlord is selling the home”. 

“The Local Authority are permitted to purchase the home at market value and the Acquisition Cost Guidelines reference upper and lower cost ranges within each local authority area. A Local Authority may make individual purchases up to the value of the ‘upper range’, without prior Department approval.  

“It is a matter for the Central Bank to put in place a code of conduct for its members, where it deems necessary and appropriate,” said the department. 

A spokesperson for Dún Laoghaire-Rathdown County Council responded to TheJournal, stating: 

“While the Council cannot comment on individual cases, we can confirm that we provide support and advice to all households who present to us as being at risk of homelessness.

“We are aware that households in our area have received notice of terminations from their landlords and may be worried or unsure about what to do. Anybody who has received a notice of termination and who has no alternative accommodation can contact our Homeless Section by calling 01 2054700 or emailing homeless@dlrcoco.ie.”

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35 Comments
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    Mute Frank Cauldhame
    Favourite Frank Cauldhame
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    May 12th 2023, 6:16 PM

    Liquidators & Receivers make big money from failing/failed companies. They are a huge earner for Accountancy firms. When a company goes bust its unsecured creditors would be lucky to get 5% of what they are owed but the Liquidator gets his full fee and the Revenue get everything they are owed. Accountancy firms police themselves, they should be subject to an independent ethics authority..

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    Mute Paul A. Crowther
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    May 12th 2023, 7:25 PM

    @Frank Cauldhame: we only have one side of the story. We should get all the facts before rushing to judgement. It’s not clear that EY were acting as liquidators. Liquidators are usually appointed by the courts or by the members of a company. It would seem that EY are acting for a client (an unnamed bank) in which case they are more likely to be acting as receivers. The significance here is that as liquidators they will make their own decision ( most likely to sell) as receivers they must act on the instructions of their client. It would be interesting to know which bank (if indeed it is a bank perhaps its a venture capital company or a property company) is involved.

    116
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    Mute Frank Cauldhame
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    May 12th 2023, 8:08 PM

    @Paul A. Crowther: There are a number of sides to this story, bottom line is that a family with four children were thrown to the wolves by people who have no sense of humanity.

    223
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    Mute Gerry Kelly
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    May 12th 2023, 6:41 PM

    Pity they’re not asylum seekers/refugees
    Then the state would be legally obliged to house them
    For free
    But as working taxpayers they have no such rights
    This is called “fairness”
    To oppose it is called “racist”

    381
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    Mute Ciaran Foster
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    May 12th 2023, 7:09 PM

    @Gerry Kelly: it’s neither racist or fairness.
    What you are saying is made up nonsense.
    But you don’t care and just hope to incite a few other dopes to your cause.

    141
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    Mute John Deane
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    May 12th 2023, 7:27 PM

    @Gerry Kelly:

    so you had to bring refugees/asylum seekers into this? you and who ever liked your comment seriously need to grow up.

    120
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    Mute William slevin
    Favourite William slevin
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    May 12th 2023, 5:23 PM

    This is an absolute disgrace…the state should step in and force the sale of the property now in the banks hands…which the state can constitutionally do…

    Their also needs to be a ban on evictions if its going to leave people homeless…again the state should step in to mediate the situation until that can ensure the tenants have somewhere to go…until the once the rent is paid then the landlord is not out if picket…if the landlord wants to sell then the state should be the one to buy without question and at market value….

    Evictions should never be allowed only in the most extreme circumstances….

    Have we not learned from happened to our people in the 1800′s ….its time that the nation state ensures no one is ever homeless wether it’s by private ownership or council House…People…families should have homes their secure in and not in fear of loosing….

    317
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    Mute Roger Bond
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    May 12th 2023, 6:01 PM

    @William slevin: Ireland is not a Communist state.People still have the right to own property.

    378
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    Mute Frank Cauldhame
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    May 12th 2023, 7:58 PM

    @William slevin: The councils run a “Buy to Rent” scheme for distressed mortgage holders but if your property has PYRITE they turn you away, just thought I’d throw that out there.

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    Mute John McGovern
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    May 13th 2023, 11:13 AM

    @William slevin: There, their and they’re. Learn the difference.

    10
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    Mute Marianne Sherlock
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    May 12th 2023, 5:47 PM

    Unbelievable these people are working and like the rest of irelands workers helped bail out the Banks.. The sheer arrogance of the bank and Ernest and young is appalling..

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    Mute Tim Walsh
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    May 12th 2023, 7:01 PM

    I doubt we’re getting the full story. Politicians are very selective with the facts. I sold my house to the council because they offered way over asking. The major drawback was it took 11 months to close a simple sale. The council wanted all sorts of reports and information. Information I had to get from other departments within the council. They then wanted an architects report, which I paid for and supplied only for them to want the same report again but this time prepared by a royal society architect. The irish architect not good enough for

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    Mute Sean
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    May 13th 2023, 3:22 PM

    @Tim Walsh: that is interesting. Yes I imagine the council didn’t turn up with a big bag of cash. It was more like enter a kafkaesque drawn out process at your own expense when you’ve already a buyer lined up.

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    Mute Gerry Kelly
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    May 12th 2023, 7:39 PM

    I was pointing out that if you are Irish and homeless – tough
    Not matter how long you have worked & lived here in terms of housing the govt has no legal responsibilities if you find yourself homeless. This currently applies to approx 12 thousand people here and is expected to grow.
    In contrast the govt is legally obliged to house everyone who comes here and claims asylum

    Those are the facts, and someday I may meet someone who thinks this is fair.

    169
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    Mute Ciaran
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    May 12th 2023, 5:27 PM

    This is obviously pretty sad story. It doesn’t state it but I imagine there was a buyer lined up already for the property. To think the seller is going to just change the buyer to the state at the 11th hour is niable at best.

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    Mute William slevin
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    May 12th 2023, 5:33 PM

    @Ciaran: the state has the constitutional power to do so…and to save people from becoming homeless it should use that constitutional power….

    131
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    Mute William slevin
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    May 12th 2023, 5:34 PM

    Also in situations like this when property is reposted and its a rental property it should be sold straight to the state as soon as it happens…

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    Mute William slevin
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    May 12th 2023, 5:35 PM

    Repossessed*

    18
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    Mute john mac
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    May 12th 2023, 7:14 PM

    Does anybody expect any difference from banks etc also there’s a lot of people in 3,4,5, bedroomed council houses and apartments whose children have grown up and left I know of lots , so 1 and 2 people in these properties owned by the councils not them should be removed and given 1 or 2 bedroomed apartments and let people with young families take over these properties

    113
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    Mute John Deane
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    May 12th 2023, 7:53 PM

    Why doesn’t Richard Boyd Barrett organise accommodation for them. I don’t see him concerned about the people who are already on the streets

    85
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    Mute Keth Tgi
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    May 12th 2023, 8:29 PM

    Very unfortunate. But this talk of ‘The State’ is a tad scary. The state is there to serve us, the people, by way of an elected government. Many people on here are suggesting the state should evolve its tendrils, and instead of serving us, should dictate to us what we can and cannot do reasonably and privately. Very disturbing.

    75
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    Mute Jb Walshe
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    May 12th 2023, 7:33 PM

    Akin to what the British did here,throwing people out on the side of the roads…..And the same bank’s after being bailed out by the taxpayers of this country,shame on them !

    87
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    Mute William slevin
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    May 12th 2023, 6:06 PM

    @roger bond: when theirs a crisis and for the common good the state has the constitutional power to act…its no where near communism what I’ve suggest…as private ownership still exists in what I said…also banks don’t have constitutional rights to own property only legal rights which can be overridden….same for any other corporation that owns property….

    So what I’m saying doesn’t infringe on anyone’s constitutional right to own property…

    53
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    Mute Stephen Kearon
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    May 12th 2023, 7:32 PM

    @William slevin: which precise article of the constitution are you referring to ?

    43
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    Mute John McGovern
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    May 13th 2023, 11:16 AM

    @William slevin: when there’s a crisis.

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    Mute John McGovern
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    May 13th 2023, 11:17 AM

    @William slevin: there’s

    1
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    Mute William slevin
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    May 12th 2023, 8:41 PM

    @Stephen Kearon: Article 40.3.2 of the Irish Constitution provides that the State may, “as occasion requires,” “delimit by law the exercise of the said right [to private property] with a view to reconciling its exercise with the exigencies of the common good.”

    Also The power of eminent domain is further elaborated on in the Land and Conveyancing Law Reform Act 2009 and other relevant legislation.

    22
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    Mute William slevin
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    May 12th 2023, 8:42 PM

    Also these pieces of legislation:-

    The Acquisition of Land (Assessment of Compensation) Act 1919

    The Land Clauses Consolidation Act 1845

    The Compulsory Purchase (Vesting Declarations) Act 1981

    The Planning and Development Acts 2000-2019, which provide for the compulsory acquisition of land for the purposes of planning and development

    23
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    Mute Craic_a_tower
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    May 13th 2023, 10:59 AM

    @William slevin: common good is for multiple people not just individual families so doesn’t apply. It is specifically for things like motorways and similar public need. We also have constitutional rights to ownership of property preventing seizure by the state. Putting it simply you are wrong the state can’t force people to sell because you think they should.

    10
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    Mute Yvon Queguiner
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    May 12th 2023, 7:59 PM

    William the spam already high jacked the comments from his sinerian farm.

    27
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    Mute William slevin
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    May 12th 2023, 8:46 PM

    @establishment loyalist Yvon Queguiner: do you mean siberian Farm lol no just somewhere in ireland…

    I hope you made peace with the end of your echo chamber…

    ; )

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    Mute William slevin
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    May 12th 2023, 8:44 PM

    @Keth Tgi:

    We are the ie the people are the nation state…

    11
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    Mute Virgil
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    May 13th 2023, 6:07 PM

    Maybe a super offer came in for the property and the owner accepted that offer (as he/she can do). The state needs to build houses, not buy them from landlords

    8
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    Mute George Vladisavljevic
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    May 15th 2023, 11:04 AM

    A asked if Irish homeless could apply for one of the new Pre-Fabricated houses that the government built for the arrival of refugees and my comment was removed.

    I guess that that pretty well answers my question.

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    Mute George Vladisavljevic
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    May 15th 2023, 6:21 PM

    They should at lest offer them one of those new pre-fab houses that are being finished soon or are Irish not allowed to apply for them?

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