Thursday 12th December, 2024      

House Prices – Ramping Up Supply Is Essential - IPAV       

Commenting on the ESRI concerns about the sustainability of house price increases, IPAV, the Institute of Professional Auctioneers & Valuers, said there is an onus on the new Government to do more than has been done heretofore to create the conditions for housing supply to be ramped up.

Pat Davitt IPAV’s Chief Executive said: ”Continuing house price increases of 10% per year as we’ve seen this year are indeed unsustainable and the best way to address that is to ramp up supply.”

He said there could be as few as about 7,000 homes available to the private market from the 33,000 new homes the ESRI estimates will be completed this year, when one off and social and affordable homes are taken into account.

“The supply issue needs a whole new focus by Government and the recommendations of the Housing Commission need to be acted upon,” he said.

And he said the co-ordination of housing policy across Government departments was essential. “In this regard the Commission’s recommendation of establishing a Housing Delivery Oversight Executive in legislation as a decision making body for a time limited period, needs to happen.”

The Commission said such a body should identify and address blockages to housing delivery and oversee and drive investment in public utilities on land zoned for housing.

Mr Davitt said there is frequently a mismatch between the approach by public policy to the market and real market dynamics.

“This issue was highlighted recently when it emerged that large firms dominate the list of developers who received loans from the taxpayer-funded HBFI (Home Building Finance Ireland) scheme that was intended for SME builders and developers.”

He said the latter were the mainstay of the Irish home building industry throughout the country but were decimated in the financial crash. “The high interest rates applicable to HBFI loans were prohibitive to their re-establishing themselves in the market,” he said.

“Housing policy needs a major reboot, and there is a blueprint for such in the form of the Housing Commission and other reports,” he concluded.

Ends