It has been reported that house building is key to Northern Ireland's economic recovery.
According to John Armstrong, Managing Director of the Construction Employers Federation (CEF) the new build housing sector is one of the key industries that can help turn round Northern Ireland's economic fortunes and create growth and employment.
Mr Armstrong explained that house building construction provides a unique "multiplier effect" on the local economy.
"Every £1 spent on direct building activity generates at least a further £2.84 in the broader economy. On top of that the construction of new houses it helps to create and sustain thousand of jobs in construction as well as in the aggregates and building materials sectors," he explained further.
"The multiplier effect doesn't stop there. New houses have to be furnished and fitted with white goods, they need gardening materials, they need curtains and carpets, kitchens and bathrooms have to be chosen and fireplaces picked.
"The list is endless and these spin offs to the broader economy help to maintain literally thousands of jobs. These jobs in turn create both tax revenues and consequent consumer spending in the local economy," he added.
This claim comes amidst news that house prices have dropped between 40% and 50% from the peak in 2007.
However Mr Armstrong claims this adjustment in prices was necessary to take us from the unsustainable levels of house price inflation we were experiencing in late 2006 and early 2007.
It is however acknowledged by Mr Armstrong that problems lie with first time buyers who are unable to meet the requirements of mortgage lenders. This teamed with the inability of first-time buyers to collect the substantial deposits required has "hindered the recovery process".
Mr Armstrong said: "CEF has been actively trying to encourage local mortgage providers to turn on the 'lending tap' and increase liquidity in the mortgage market".
(LB/BMcC)
Time and date
CONSTRUCTION DIRECTORY
Latest Construction News
20/11/2024
MDE has been awarded the electrical services contract for the Clondalkin School Development Project in Dublin. Working alongside Cunningham Contracts Ltd., the company will serve as the specialist electrical contractor for the construction of new facilities for Gaelscoil na Camóige, Gaelscoil ...
20/11/2024
In celebration of European Week for Waste Reduction, the Northern Ireland Resources Network (NIRN) has launched an environmental education programme to promote zero-waste principles among young people. Three schools from the ABC Borough—St Francis Primary School in Lurgan, St Patrick's Primary ...
20/11/2024
Work has begun at hospital sites across Northern Ireland as part of preparations to eliminate car parking charges by May 2026. Health and Social Care Trusts are installing the necessary infrastructure for a new traffic management system, following the passing of the Hospital Parking Charges Act by ...
20/11/2024
Fine Gael has accused Sinn Féin of abandoning its commitment to protect consumers from rising energy costs, claiming that the party's policies could lead to increased costs for 2.1 million customers. The criticism comes after Sinn Féin's alternative budget last month proposed retaining the ...
20/11/2024
SDLP Agriculture, Environment, and Rural Affairs Spokesperson Patsy McGlone has urged Minister Andrew Muir to take decisive action to protect the environment, rather than launching additional reviews. The comments came after Minister Muir announced a review into environmental governance during an ...
20/11/2024
Alliance Strangford MLAs Kellie Armstrong and Nick Mathison, along with Alliance East Antrim MLA Danny Donnelly, recently visited the tidal research experiment at Queen's University Marine Laboratory (QML) in Strangford. The project, funded by the Centre for Advanced Sustainable Energy (CASE), is ...
19/11/2024
Phoenix Energy has been awarded an international standards accreditation from the British Standards Institution (BSI) in recognition of its inclusive service approach for customers in vulnerable situations. The certification highlights Phoenix Energy's commitment to providing fair, flexible, and ...
19/11/2024
Seating Matters is investing £3.7 million to enhance and improve its manufacturing facilities in Limavady and L'Derry. The company is aiming to support its bold strategy to triple revenue by 2027. Making the announcement while visiting the company's Limavady site Economy Minister Conor Murphy ...
19/11/2024
SDLP Infrastructure Spokesperson Mark H Durkan has urged the Minister and the Executive to take immediate action to address problems within Northern Ireland Water. Mr Durkan warned that the current state of the wastewater system is creating significant delays for infrastructure projects across ...
19/11/2024
Galway City Council will hold a public information evening on affordable housing on Monday, November 25, 2024, from 4pm to 8pm at the Connacht Hotel, Old Dublin Road, Galway. The event will provide an opportunity for the public to learn about how affordable housing operates. Council staff will be ...