Revised Housing Strategy to Address Crisis and Meet Delivery Targets

Strategic Insights -

Government officials are set to unveil a new strategy to tackle Ireland's housing crisis, with the housing minister, James Browne, expected to announce the plan before the budget. Construction industry leaders and key stakeholders in the housing sector have emphasized that addressing the undersupply of building sites, reducing developers' costs, and prioritizing policy consistency are crucial matters that need to be addressed. Developers and investors have called for "serious sanctions" to be applied to local authorities if they are not proactive about zoning more land, while housing charities and landlords have emphasized the need for a long-term vision and clarity on how national targets will be achieved.

Key Takeaways:

  • Zoning more land to address the undersupply of available sites for building housing should be a core priority of the revised strategy.
  • Developers and investors are calling for "serious sanctions" to be applied to local authorities if they are not proactive about zoning more land.
  • Aidan Gavin, chief investment officer of Ronan Group Real Estate, said local authorities should be encouraged to zone more land on a "rolling basis" to facilitate dense apartment building.
  • Pat Farrell, chief executive of Irish Institutional Property, emphasized the need for measures to narrow the "viability gap" for apartment building, which can be achieved through reductions in VAT.
  • Marian Finnegan, managing director of Sherry FitzGerald's residential, called for a long-term vision in the new plan, highlighting the need to establish consistent policy approaches.
  • Housing charities are emphasizing the importance of policy consistency and a co-ordinated approach to the delivery of projects, with consistency in approving schemes across all tenures.
  • Sharon Cosgrove, chief executive of the approved housing body Oaklee, said the housing plan should give clarity on how the national targets set out in the national development plan review will be achieved.
  • Eddie Byrne, chief executive of property group Ires Reit, emphasized the need to focus on reducing developers' costs, suggesting a VAT reduction or waiver for high-density developments.
  • Stephen Garvey, chief executive of the housebuilder Glenveagh Properties, called for a holistic approach to create an environment for efficient planning, procurement, and construction delivery.

Statistics:

  • 16,000 people are assessed as homeless (Sharon Cosgrove, chief executive of the approved housing body Oaklee).
  • 60,000 people are assessed as being in need of social housing (Sharon Cosgrove, chief executive of the approved housing body Oaklee).
  • 13.5% is the current VAT rate (Pat Farrell, chief executive of Irish Institutional Property).
  • 5% is the reduced VAT rate suggested to narrow the viability gap (Pat Farrell, chief executive of Irish Institutional Property).

Sources:

  • Patrick O'Donoghue, The Irish Times, "Government to unveil revised housing strategy", (no date provided).
  • Michael O'Flynn, chairman of the O'Flynn Group, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Aidan Gavin, chief investment officer of Ronan Group Real Estate, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Pat Farrell, chief executive of Irish Institutional Property, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Marian Finnegan, managing director of Sherry FitzGerald's residential, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Brian O'Gorman, chief executive of Cluid, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Sharon Cosgrove, chief executive of the approved housing body Oaklee, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Eddie Byrne, chief executive of property group Ires Reit, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).
  • Stephen Garvey, chief executive of the housebuilder Glenveagh Properties, as quoted in The Irish Times, "Government to unveil revised housing strategy" (no date provided).