Nearly a year ago, there was criticism on here that NAMA still didn’t have a proper handle on its Irish residential property – NAMA would merely say that 9,200 homes were rented but there were 4,000 other homes whose status was not clear. This week in the Dail, we got an update and it seems that right now, some 3,250 of NAMA’s Irish homes are vacant.
NAMA says that it is currently renting out 10,000 homes at an annual rent of more than €100m – that’s an average of €10,000 each per year or €833 per month.
However NAMA says that 4,000 properties have been made available for social housing, but of these 750 have been sold or rented. So that leaves 3,250 homes that are presently vacant. We don’t know exactly where these properties are located but NAMA has said in the past that most of its residential property is located close to major urban centres where there is a strong rental demand. That means that 3,250 properties which might be capable of generating €32.5m in rent per annum, if the properties are similar to the 10,000 already rented, are currently lying empty.
That’s a pretty awful indictment of NAMA’s asset management capability.
NAMA says that it also has 400 properties for sale with its 80:20 deferred payment initiative, or “negative equity mortgage”.
The information was revealed in a response to a question from the Sinn Fein finance spokesperson Pearse Doherty to the Minister for Finance, Michael Noonan, set out here.
Deputy Pearse Doherty: asked the Minister for Finance further to Parliamentary Question No. 207 of 22 May 2012, if he will provide a breakdown of the stock of Irish residential housing in the National Asset Management Agency portfolio, showing the number of units rented and vacant, and showing the number of units being offered for sale and for rent.
Minister for Finance, Michael Noonan: I am advised by NAMA that it is continuing to carry out extensive analysis of data on residential property under the control of its debtors and receivers and expects to be in a position to publish the findings from this analysis in its 2012 Annual Report. At this stage in its analysis, NAMA advises that some 10,000 properties securing its loans are currently rented and are generating an annual rental income in excess of €100 million; a further 4,000 vacant houses and apartments have been made available through the Department of the Environment, Community and Local Government for social housing; and a further 400 properties have been made available for sale under the Agency’s 80/20 Deferred Payment Initiative, which the Agency plans to extend up to a maximum of 750 properties.
NAMA advises that to date sales have been agreed on 120 of the properties included under the 80/20 Initiative. NAMA also advises that in the time required by local authorities to assess and confirm demand for properties identified as being available for social housing, over 750 have been sold or privately let by their owners or, on their behalf, by duly appointed receivers. NAMA advises that the strategy for any given residential property depends on the detail of the asset disposal and asset management plans that have been agreed with individual debtors and receivers and that these plans are subject to on-going review. NAMA advises that the NAMA Board’s policy is that all assets are ultimately intended for sale. NAMA advises that it is not in the business of encouraging its debtors to stockpile assets but that actual sales depend on the level of demand in particular markets segments and on the availability of finance. NAMA further advises that it must also seek to ensure that its debtors do not offer for sale a volume of assets in excess of the current absorption capacity of the market.