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Government must invest in supply of affordable rental & purchase homes – Ó Broin

14 November, 2017 - by Eoin Ó Broin TD

Sinn Féin Housing spokesperson Eoin Ó Broin TD has called on the Government to “invest directly in the supply of affordable rental and purchase homes” to address the growing affordability crisis. His call was made in response to an ESRI report predicting a 20% rise in house prices over the next three years.

Deputy Ó Broin said:

“Renting or buying a home has become increasingly out of reach for many working people. Those earning above the thresholds for social housing but below a gross household income off €75,000 per year are being priced out of the rental and purchase markets.

“Today’s ESRI report makes for grim reading, predicting as it does a 20% increase in house prices by 2020. Read alongside today’s Q3 rent report, showing an increase of 11.2% since last year it is very bad news indeed.

“While the ESRI are correct to warn against easing access to credit, they are naive if they believe supply on its own will remedy the situation. As we saw during the boom, supply without real affordability measures will not solve the problem for modest income working people.

“Government focus must be on reducing the cost of purchasing and renting a home. They must focus on investing in a supply of affordable rental and purchase homes.

“Instead of pumping €1.1bn over three years into private sector schemes such as Help to Buy, the Local Infrastructure Fund and Home Build Finance Ireland, Government must invest this money into Council led affordable housing. This could also be done in conjunction with not for profit housing co-ops.

“Affordable housing means properties at a sale price of between €160,000 and €260,000 in Dublin targeting households with incomes above the social housing threshold and below approximately €75,000 per year.

“It also means affordable rental tenancies with rent set at the economic cost of the provision and maintenance of the unit rather than on market prices.

“Sinn Féin outlined in our Alternative Budget how government could start providing these two new streams of affordable rental and purchase public housing. Given the bad news from the ESRI and today, it is high time the Government started to listen.” 

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