A SHORTAGE of suitably serviced sites is adding substantially to the ultimate costs of new houses, the Construction Industry Federation (CIF) has said. Housebuilders are becoming increasingly concerned about the issue, it claimed.
It also predicts that new housing activity will slow significantly this year, a trend anticipated after three good years, and is part of the cyclical nature of the sector.
Development in numerous major urban areas is being held up due to a lack of basic infrastructure, such as sewage treatment, drainage and water. "This is having a major effect on site prices and has resulted in site costs increasing by up to 100 per cent, over the last couple of years," the CIF says.
New private housing activity is expected to have increased by 10 per cent in volume in 1996, but the consensus is now that this activity has peaked, according to the CIF.
It says priority must be given to removing major development bottlenecks, which will not only give rise to employment during the construction phase, but will free up land for housebuilding and "enable the much improved levels of employment in the sector to be maintained".
The CIF president, Mr Kevin Kelly, said yesterday that the organisation was also seeking a 12 month extension to the current Urban Renewal Scheme, as some schemes have been started, but will not be complete by the August 1st deadline. The CIF is also seeking a new scheme to replace the current one.
