Wednesday 21st February, 2024                            

CSO House Prices - Impediments To Building Homes Persist Pushing Prices Higher - IPAV

Commenting on today’s CSO House Price Index for December, IPAV, the Institute of Professional Auctioneers & Valuers, said as prices move higher again it still looks like we’re some way off ramping up supply to anywhere near the levels needed. 

Pat Davitt, IPAV’s Chief Executive, said:  “The perennial problems with planning and the cost of building finance seem as stubborn as ever.  And on the latter we could see things get worse before they get better, given the hike in ECB interest rates,” he said. 

And he said it was unfortunate that much of the political debate around housing is still focusing on “stick rather than carrot”. 

“Continuing to demonise and over regulate landlords is dealing with the symptom of the problem, not the issue itself, and it will ensure the continuing flight from the market of landlords,” he said. 

“To have any hope of achieving a sustainable property market where people can buy, sell or rent according to their means, we have to tackle the real impediments to the building of homes, which largely rests in the areas of planning and investment finance.” 

He said most activity in the housing market involves those on higher than average incomes and those who are not dependent upon or at least not fully dependent upon mortgage finance.

“That needs to change if we are to maintain social cohesion,” he warned. 

Ends