Taoiseach comments on land show that government doesn’t understand the housing crisis - Eoin Ó Broin TD
Sinn Féin Housing spokesperson Eoin Ó Broin TD has criticised the Taoiseach for making light of the housing crisis with his recent comments on the existence of a “land bubble” and the associated housing costs.
Deputy Ó Broin said:
“If the Taoiseach genuinely doesn’t believe that there is a problem with land costs in this State then his government does not understand the housing crisis.
“In April a report published by the Department of Housing a ‘Review of Delivery Costs and Viability for Affordable Residential Development’, acknowledged that the cost of land is a serious problem and that state lands should be utilised better for residential development.
“Two reports published by the Institute of Chartered Surveyors one housing construction costs and one last year on apartment construction costs both State that land costs have an impact on viability.
“In May 2016 the Institute of Chartered Surveyors report “The Real Cost of New House Delivery stated:
"'It is clear that there is a serious financial viability issue in the provision of housing and with particular emphasis in urban areas, where the demand is highest, but where land prices are also at their highest.'
“The Real Costs of new Apartment Delivery report from April 2017 stated that site costs included in this report ranges from €33,000 to €125,000 per apartment. For example, of the total development costs of a two bed apartment in the suburbs the site purchase cost accounts for 16% or on average €70,000.
“If the Taoiseach is hoping that the CPO powers of this new land development agency will be a game changer I think he may be disappointed. Local Authorities already have CPO powers and some like Louth County Council have used them well, however it is an expensive tool.
“To counteract the increasing unaffordability of housing especially in urban areas the State needs to use the land it has and build affordable homes on it. It’s that simple.”