Govt Urged To Take Action On Housing Crisis

The Government has been urged to take action over the housing crisis following the publication of three residential construction cost reports.

The reports compare construction costs in Ireland and comparable countries in Europe, the impact of the new construction guidelines for apartments and other issues such as land costs and how state lands could be used to deliver housing.

Sinn Féin Housing spokesperson, Eoin Ó Broin TD, the reports "confirm that the market cannot deliver genuinely affordable homes" and that State land "should be used to deliver more residential units".

"The Department of Housing Report, 'Review of Delivery Costs and Viability for Affordable Residential Development', recognises that the cost of land is a serious problem and that state lands should be utilised better for residential development," he said.

"Sinn Féin welcomes this. It has long been our view that the state lands should be used for local authority led public housing delivery.

"Sinn Féin set out costed proposals in our Budget last year and this year we will do the same on how local authorities can drive the delivery of affordable homes for sale and for rent between €170,000 and €260,000."

Continuing, Deputy Ó Broin said social/'affordable' homes for rent and for sale should be delivered on State lands by local authorities, "not by public private partnerships, not via land initiatives and certainty not to private developers with no iron clad contractual commitments on affordability".

He said: "Worryingly one of the key recommendations of the report by the Department of Housing states that: 'Will match land with those best placed to deliver affordable units bringing increased affordable products in key locations. It will discourage high sales in the vicinity and ultimately will reduce land sale values enabling the provision of lower cost units to the market.


"It is impossible for affordability to be guaranteed unless the Department recognises that local authorities are best placed to deliver affordable units, supported by approved housing bodies and the Ó Cualann co-operative model."

Deputy Ó Broin added that the reports definition of affordability, between €240,000 and €320,000, "immediately blocks access to homeownership for people who earn above the income to qualify for social housing and whose average household income is between €45,000 and €75,000".

"These people are now trapped in the volatile private rented sector," he said.

"If the State aimed to significantly increase the targets for social housing, this would in turn alleviate pressure on the private rented sector."

Mr Ó Broin added that Sinn Féin welcomes the Department of Housing discounts introducing a VAT reduction as a means of lowering construction costs.

"The 'Review of Delivery Costs and Viability for Affordable Residential Development' report states: 'given EU VAT Directive requirements, this is not achievable and would likely only result in further increases in land prices'," he said.

"This dispels the myth peddled by the Construction Industry Federation and Fianna Fáil that reducing VAT will make homes more affordable."

Furthermore, despite the industry claiming the cost of construction is too high in Ireland compared with other countries, Mr Ó Broin said the Housing Agency report 'Comparison of Residential Construction Costs in Ireland to other European Countries' suggests that costs for buildings in this state are "comparable with other EU countries including the UK, Germany and France".

"The third report published today, 'Cost Analysis of the Updated Sustainable Urban Housing: Design Standards for New Apartments, Guidelines for Planning Authorities', claims that the new guidelines have reduced the cost of constructing apartments by 13-15%," he continued.

"The claims are based on one example in Dublin 8 and if the costs are reduced by 15% for developers, will this cost be passed on to potential homeowners? 

"Again, you have to ask who is the Minister for Housing reducing costs for?"

Fianna Fáil's Spokesperson on Housing, Darragh O'Brien TD, said the Government must ensure it has the skills base to meet demand and ensure costs "don't spiral out of control".

"Other critical amendments are needed to strengthen the viability of building affordable homes such as addressing car parking regulations, and the degree of access to finance," he said.

"An ambitious new affordable housing scheme on State lands must form an essential part of the Government's strategy in the coming months. Otherwise these reports won't be worth the paper they are written on."

(LM/MH)