"It's A Sad Situation", Says Developer As "Systemic Failures Leave" Kildare Homebuyers In Limbo

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

Systemic failures, skyrocketing construction costs and broken planning systems are paralysing the construction industry.

That's according to the developer of a building company gone into receivership.

In a long-running interview with Kfm, Eugene Finn, managing director of Landport Estates Ltd, trading as Alder Homes, said "without a doubt", the company tried to complete a housing development in Cluain Dara.

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

"We just weren't permitted to continue. There's no question about that. Those people would be in their homes now if it was left up to me," Mr Finn said.

There are 15 homes unfinished in the estate, leaving a number of buyers in limbo. Some properties were intended for social housing, adding complexity to the situation.

When asked about the position some homeowners now find themselves in, he said: "Like I say, for me, they're the ones largely impacted here. You know, buying a house for anyone is a life changing event. It's stressful enough without there being unwarranted delays - things that could have been avoided."

Finn attributed the collapse to systemic failures within the construction industry.

His stark assessment painted a grim picture of an industry apparently besieged by bureaucratic red tape and escalating costs. He pointed to broken planning systems, zoning inefficiencies, and a glaring lack of infrastructure as primary contributors to the company's downfall.

The financial strain induced by skyrocketing construction costs proved insurmountable, he said, forcing Landport Estates Ltd to cease further development plans. Finn said spiralling expenses and contractual obligations left the company teetering on the brink of collapse.

As the company navigates the receivership process under the oversight of Cormac O'Connor of KPMG, the fate of the unfinished properties remains uncertain.

Prospective homeowners now find themselves in limbo, grappling with the prospect of dashed dreams and financial losses.

Finn said he will not be involved with future house-building endeavours.

He lamented the lack of control developers wield over projects, citing a regulatory framework riddled with obstacles and, what he said, are insufficient government interventions.

Alternative development projects faced formidable hurdles, with planning applications being refused. He said there is an urgent need for comprehensive reforms to address supply-side deficiencies and streamline regulatory processes.

He said: "It's a very sad situation to be honest. It's extremely stressful for them, and I'd like to say, I've spoken to all of our buyers over the last, um, recent, recently obviously, but for the last year and a half, while we've been delayed, Uh, I've been trying to keep, keep in touch with them and keep them posted on, on events but it's one of those things that's just completely out of our control."

"You know, there's a lot of people that have control over the project and influence on the project, be it planning, zoning, funding. There's only one person paying the bill and, for me, it just got very, very much out of control."

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.

"For me, the system is broken and it's going to trundle on for a long time," he said.

He added: "In order to solve a problem, you have to establish exactly what the problem is. And I don't think we're there yet...Unless there's a stimulation on the demand side, unless there's more land zoned, unless there's planning being granted, unless there's something being done about objections, nimbyism, unless there's something being done about, you know, a longer term plan for the provision of infrastructure - all we're doing is putting a sticky plaster over it to be honest."

In response to queries, Kildare County Council said the Cluain Dara development "was originally granted permission in 2006 and was extended in 2011 and again in 2017 and further extended in 2021(Covid Provisions)."

The added: "Kildare County Council are precluded from granting any further extensions to this permission under Section 42(4) of the Planning and Development Act 2000 (as amended)."

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.