House Building Company Halts Development In Kildare: Director Cites Excessive Red Tape, With Several Properties Unfinished

Buyers who entered into contracts for their homes are left in limbo.

“I’ve withdrawn from house-building"

Eugene Finn, managing director of Landport Estates Limited, trading as Alder Homes, has announced the company's decision to stop developing new homes due to excessive bureaucracy within the system.

Alder Homes was involved in constructing two estates in Kildare, Cluain Dara in Derrinturn, and Ballintine Park in Naas.

However, due to delays and rising construction costs, several properties, particularly 15 in Cluain Dara, remain unfinished, leaving buyers uncertain about their future.

Receivers were appointed by Castlehaven Property Finance, a creditor of Alder Homes, due to concerns about funding the developments. Cormac O’Connor of KPMG is managing the receivership process.

Buyers who entered into contracts for their homes are left in limbo. Some properties were intended for social housing, adding complexity to the situation.

According to the Irish Independent, Finn expressed frustration with bureaucratic red tape, stating it has become a hindrance to progress, particularly for first-time buyers.

“You know why the bureaucracy and red tape is in place, and that’s because of spurious practices in the past, but it’s gotten to the point where it is choking progress which is not helpful for anybody, especially first-time buyers. That’s where the real disappointment lies," he said.

Alder Homes faced challenges with planning permissions, with previous extensions granted but recent refusals by local authorities.

Construction costs and delays contributed to the company's financial strain, leading to the receivership.

Mr Finn is director of another company which applied for planning permission for 17 residential units and 18 car park spaces in Kilcock.This company is unaffected by the receivership. However, Kildare County Council refused the application.

“I’ve withdrawn from house-building,” Mr Finn said.

He added: “I don’t think I’ll be going back any time soon. It is so tied up in bureaucracy and red tape. Unless you’re in the top 10 house-builders, you’re going to suffer. It’s a costly business."

Kfm has contacted Mr Finn for further comment.

Similar cases of receiverships affecting housing developments have been reported, such as in Meath, where buyers face uncertainties due to financial difficulties encountered by developers.

In Rathmolyon, purchasers who signed contracts for houses in an estate are uncertain about their move-in prospects.

Meathamatic Ltd, the developer, faced financial struggles leading to the appointment of receivers. Subsequently, buyers were requested to pay an extra €60,000 beyond the agreed sale price due to Meathamatic's miscalculation of construction expenses.