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Sheep still graze as major Letterkenny housing project awaits tender approval - Donegal Daily

By Rachel McLaughlin · Donegal Daily · 15 October 2026

Frustration is mounting over the slow pace of the 172-home Ballymacool social housing scheme in Letterkenny.The major project had was first projected to begin...

Frustration is mounting over the slow pace of the 172-home Ballymacool social housing scheme in Letterkenny.

The major project had was first projected to begin on site in 2025 , with an initial 100 homes due to be completed by the end of 2026.

However, construction has yet to begin and the scheme is still at the detailed tender documentation stage.

Cllr Tómas Seán Devine said that despite hopes of progress by 2027 , no ground has been broken on the site and it continues to be used for farming.

“The only thing I am seeing living there is sheep," Cllr Devine told a meeting of the Letterkenny-Milford Municipal District this week.

Cllr Devine said he is getting constant calls from people desperately looking for homes, some facing eviction and older people facing homelessness.

The 100% Redress councillor says he is "at wit's end" trying to get social housing updates from the local authority.

“I am inundated with people needing homes, but I don’t see any mad rush to build them," he told the council.

The latest Council housing report for October says an Architect Led Design Team is progressing the tender documentation for Ballymacool, with 409 documents currently being reviewed.

Members were told that Department approval is required before the project can proceed to tender and move towards construction.

"There is ongoing engagement with the Department in this regard," the council said.

Members were told that a further meeting with the Department is due shortly, with the Council keen to get the scheme to the point where it can go out to tender.

Artist's impression of the 172 social housing units proposed at Ballymacool, Letterkenny. Image: Vincent Hannon Architects - VHA

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The project is intended to have a "substantial effect" on the housing need in Letterkenny once delivered.

There is a total of 432 homes across various schemes at construction, tender and design stages in the Letterkenny-Milford area.

The second largest project is a further 140-home development planned for the High Road in Letterkenny, where architects have been appointed and design work and site assessments are progressing.

The Council is actively expanding its landbank for future social housing, including negotiating for other sites across the Letterkenny-Milford area. In Kerrykeel, members were told that an offer to acquire land has been accepted subject to contract and funding approval.

Nine homes at Killylastin have been completed, while construction is progressing on 77 homes across the MD, including 30 at Oran Hill on the Kilmacrennan Road, one at Knockbrack in Listillion, 10 at Mulroy View Phase 2 in Tamney, 20 at Ard na Glaise Phase 2 in Kilmacrennan and 16 at Oldtown in Letterkenny.

A further 21 turnkey apartments at Windyhall are substantially complete and are expected to be allocated shortly.

Cllr Ciarán Brogan said that progress should also be recognised.

Cllr Brogan said the Council’s housing and regeneration teams should work more closely together to identify opportunities to bring additional homes into Letterkenny town centre.

He suggested that smaller town-centre projects could provide some “quick wins”.

Questions were also raised over the proposed redevelopment of the defectice concrete-affected Nás Mór apartment block, which is due to be demolished and rebuilt.

Cllr Gerry McMonagle pointed out that Part 8 planning approval had been passed almost two years ago and asked whether there was a problem holding the project up.

Members were told that the Council supports the concept of redevelopment but has not yet been able to secure the necessary Department approval, and will raise the matter again.

There were 1,221 approved applicants on the social housing waiting list in Letterkenny-Milford in September, including a net housing need of 494 households. A further 618 applicants were receiving HAP but had chosen to remain on the Council housing list.

The Council currently has a social housing stock of 1,607 homes across the Letterkenny-Milford area.

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Reporting by Rachel McLaughlin for Donegal Daily, funded by the Local Democracy Reporting Scheme. Republished by News Room under the scheme’s reuse permission.

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