GUEST BLOG: The key to housing in Ireland

By Maria Bailey, TD

One of the best things about my job is the variety that comes with every day. One consistent query though is housing.

Whether it’s a family who needs more space or people who remain on the housing list for months before they are offered any accommodation, every case is different and takes time to assess.

Then there are the people who are saving to try and buy their own home. This can be equally stressful as they try to reach that crucial deposit, hoping that the bank will take a favourable view of their monthly efforts to build up the savings account.

I feel for all of these people. Like many in my age group, my husband and I struggled to get the funds together to pay for our home. Now that we have two young daughters, there are other financial commitments to factor in, but I am always grateful that we have our home and don’t have to go through all that again.

CREATING INCENTIVES

A major contributing factor to the current housing crisis in Dublin is the lack of sufficient construction activity, which is causing a lack of supply. We simply don’t have enough houses.

Frustratingly, we know that planning permission has been granted for a number of houses and apartments in areas where there is most need, but they aren’t being built.

Latest figures show that for the first nine months of 2015, Dublin house completions were at 2,057 units; just a quarter of what is required. In addition, much of the new housing supply coming on stream is costing in excess of €300,000, which is a price level that is beyond the reach of most first-time buyers.

We need more homes – but we need them at realistic prices. So how can we achieve that?

To enhance supply at prices people can afford, a once-off initiative is in place to kick-start an increased supply of new housing construction at more affordable prices under €300,000 in Dublin.

The initiative will provide for the following accelerated delivery of up to 7,000 more affordable homes in Dublin spread across the four local authority areas. Rebates will apply to developments where a project plan is submitted to the relevant local authority indicating that the development is for more than 50 units and completed and sold in 2016 and 2017. In addition, units within appropriate floor areas, will be priced under €300,000 in Dublin.

This should incentivise builders to complete developments on time, to a proper standard and at fairer prices than we saw during the property bubble.

NAMA is aiming to fund the delivery of 20,000 residential units before the end of 2020.

NAMA is currently carrying out a detailed, site-by-site, bottom-up review of the residential sites controlled by its debtors and receivers and estimates that 90% of these units will be in the Greater Dublin area. About 75% of these units will be houses, mainly starter homes.

A major contributing factor to the current housing crisis in Dublin is the lack of sufficient construction activity, which is causing a lack of supply

ONE DIRECTION

While good news, none of this is immediate, so we’ve had to consider shorter-term solutions, such as modular housing. There has been some criticism of modular housing, branding them a quick fix, but I went to view the model units on display and was very impressed with the standard of accommodation and facilities.

While I agree that they must only be provided temporarily, I think they will serve a valid purpose for the many families who are living in limbo in temporary accommodation with inadequate cooking and washing facilities.

We are not where we need to be, but we are moving in the right direction.

I do wish I could give everyone what they need right now, but I can’t. What I can do is provide them with a reasonable expectation of when a suitable home might come on stream.

Our economy is recovering. The next step is to stabilise that recovery so that we can once again begin to flourish as a society.

I am optimistic that these new measures coming on stream will lead to greater supply of houses, so that everyone can have a proper place they call home.

Photo (main): woodleywonderworks