International conference to discuss Irish building and supply issues

Some well-worn arguments and accusations are flying around between Government and builders as the housebuilding issue thunders on.

The issue has become so central to the market, that the Institute Professional Auctioneers and Valuers (IPAV) plans to have the issue thrashed out at an international conference in Dublin next Wednesday.

Auctioneers are concerned that because of the new financial restrictions imposed by the Central Bank, only 42,000 house sales will be recorded this year, whereas a healthy market, it says, should produce 100,000 sales.

The IPAV is now bringing in European experts to support its views on mortgage lending value with a range on Irish and European speakers lined up for the event at the Chartered Accountants House on Pearse Street.

Pat Davitt, chief executive of IPAV will use the occasion to outline the anomalies in the housebuilding and rental markets. He points out that while there were 145,000 people renting from private landlords in 2006, this has grown in 2015 to 306,000. “The property market is changing with many would-be purchasers now happy to rent long term because they fear falling into a negative equity trap.”

The auctioneers are still waiting for Environment Minister Alan Kelly to justify his claim that part of the problem is builders “still being greedy and expecting boom-time profits”. The claim has enraged builders who are finding it extremely difficult to fund the purchase of new sites, never mind building on them.

Either way, the Minister and the Central Bank need to revisit the mortgage issue, if the industry is to bounce back.