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UNCERTAINTY LOOMS OVER how many more homes can be built in the near future due to unavoidable delays, rising costs and supply constraints.
That is according to the Central Bank’s latest report, which warns that many factors have contributed to a lag between planning permissions being granted, the commencement of building and home completions.
“While there have been increases in the numbers of housing units completed in recent years, looking ahead there is uncertainty around the timing and scale of future increases,” the report says.
“This has arisen given the implications of pandemic-related delays, rising input costs and supply constraints challenging viability, and in part, the operation of policy initiatives, such as the changing deadlines for the waiver of development levies and water connection fees.”
Earlier this year, the Economic and Social Research Institute (ESRI) criticised the government’s National Development Plan, saying it “underestimated what is needed” to deal with challenges including housing.
A key target in the Housing For All policy is the completion of 33,000 homes per year until 2030.
However, the ESRI warned the figure was “too low and will likely be revised upwards” given the “increase in inward migration, particularly associated with the war in the Ukraine”.
It also noted constraints such as a labour shortage in the construction sector and the increase in input costs due to inflationary pressures.
The government fell 2,680 homes shy of their social and affordable housing targets for last year.
Despite challenges, the Central Bank says that the Irish economy has effectively bounced back after the pandemic and Russia’s invasion of Ukraine.
Domestic spending decisions, it says, have worked well so far, but going forward the government will need to rein in its core spending if the country is to avoid “overheating”.
“Such a scenario would lead to higher inflation, damaging Ireland’s competitiveness and long-term prospects for growth in living standards.”
On public finances, structural vulnerabilities were found in Ireland’s current approach.
The report noted the concentrated risk surrounding corporation tax receipts, as 10 large multinational firms account for 52% of these receipts in 2023, and 10% of total government revenues last year.
“This leaves the public finances vulnerable to firm- or sector-specific shocks, while also presenting significant uncertainty as to the eventual effect of reforms to the global framework for corporation tax.”
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By design folks. Keep voting FFG, the party of vulture funds and landlords blinded by short term greed. A demographic timebomb they’ve created. Young people cannot afford homes, nevermind start a family.
@Sean Stevenson: The parties are a reflection of the people, unfortunately. Planning for example, doesn’t adhere to logic and is painfully slow because that’s what a lot of Irish people are like.
@Sean Stevenson: We need more foreign and private investment (what you call “vulture funds” ) in housing. The reason why prices are high is because of the lack of supply of homes. Building homes costs money. The more money to build new homes, the better. The planning process needs to be speeded up. The left’s wet dream of the state building and managing housing for everyone is just that.
@Tom D: @Tom D: No.
No we do not.
The last thing we need is for more and more of our homes being owned by vampire and vulture funds.
The last thing we need is to return to absentee landlordism.
The last thing we need is to be tenants in our own land.
That ‘wet dream’ of state built housing you refer to worked very well in the past.
It was the cessation of that which contributed to the mess we are in now.
It was depending on the private sector to provide housing that contributed to the mess we are in now.
@ItWasLikeThatWhenIGotHere: well said. He’s clueless
@Tom D: Who says the government should build housing for everyone? I’ve never heard that. The housing commission report says that 20% of the housing stock has to be social housing and it should “provide a substantial source of rented housing for lower and middle-income households in future”. It’s very simple, half the workers in the country can’t afford to rent without HAP, the median disposable income for a person with a degree is just over 30,000 and the HAP limits are 40,000 a year in Dublin. Looking at the income groups by decile, it seems like a third of working two parent families with 2-5 children will go homeless without HAP. The investment funds are openly telling their investors they plan on keeping rents as high as possible and housing is not getting built quick enough. 35,000 houses a year until 2030 and we are almost a quarter of a million homes in deficit? So we’d have the homes we need now at the end of 2030 and in the meantime we have circa 55,000 young people a year turning 18 and immigration to go with it. By that time somewhere in the region 385,000 people will have turned 18 and be in the market for rental or purchase. The targets are too low and there is no denying it. Prices will never come down at this rate.
Just to let you know, I’m on holiday at the moment, but will endeavour to sort this problem at the earliest opportunity when I come back. Kind regards Darragh O’ Brien..
@Paul Gorry: So people aren’t allowed to take holidays.
Lets bring back father Ted to sort out the housing issue in Ireland… successive governments have been caught with their trousers down year after year… and blaming the ” foreigners ” isn’t the answer .
What a farce it’s become
Govt spending is up because they are taking in mega income tax and vat receipts on the back of the cost of living crisis. They take it in so they spend it. Our personal taxation needs total reform as we’re being taxed as if there wasn’t just 20% inflation. IT and Vat takes both up 30%+ since 2019 and guess what, so has govt spending.
@another one? what’s going on is the semi state sec: You can view the exchequer returns side by side.from their annual report on this post…..
https://x.com/colmkane83/status/1802940255848239299?t=4YkpsJMPcx_1ymNINO_RUA&s=19
@another one? what’s going on is the semi state sec: Income tax cuts tend to put downward pressure on wages with workers entering the workforce being the worst effected. Essentially employers see income tax cuts as an opportunity to pay people less. If then later, say in a bust cycle, taxes are raised again, then those workers are double screwed. I would rather wages rise than income tax cuts.
Quelle surprise!
You voted for that people. Same guys were in, sometimes even as a business family. Surprised ?
Taxpayers are paying for everything including housing illegal IPA’s and cannot afford to rent or buy for themselves
Not too worry”Labour promised 1 million homes “if elected.
One word: Tents.
4th proper paragraph down, 2nd line: “Virus’. – Can we please put Covid to bed. The best get out of jail card ever.
The graphic with the fence speaks volumes.
have your say