Housing crisis initiatives `must focus on supply'

Any further Government initiatives to ease the housing crisis should aim to increase the supply of residential property, according to the author of the Bacon Report on housing.

Dr Peter Bacon, whose Government-commissioned report was published in April, said if supply was not increased developers and investors might capitalise on fresh concessions for first-time buyers.

He was speaking yesterday at a joint meeting of the Joint Committees on Family, Community and Social Affairs and Environment and Local Government.

Dr Bacon stressed that residential densities needed "to be cracked".

He suggested there should be an increase in Irish densities, currently among the lowest in Europe, saying it would be difficult to achieve stability in the housing market with the geographical constraints that existed.

He added it was essential that a study be undertaken to evaluate the State's long-term housing supply needs.

Unless this was done, he said, Ireland could face the same situation in 10 years.

Such a study should include an analysis of what improvements in services, public transport and infrastructure were needed in rural areas to stem the population flow to the capital, he said.

Figures from the Department of Environment and Local Government showed more than 40,000 housing units would be completed this year. That is equivalent to 11 units per 1,000 people, the highest rate of construction in Europe, or three times that of Britain.

Mr Sean O'Leary, assistant secretary of the Department, said there were indications of some easing of the house prices situation and first-time buyers were reclaiming the starter-home market from investors.

He added: "There is not a housing crisis. There are certain problems that have to be dealt with." Those included housing afford ability, supply and an increase in the number of people applying for local authority housing.