Homes built in Dublin last year only met half of the demand

Just over half the minimum number of new homes needed to meet demand in Dublin city and county last year were built, according to new figures from the Housing Agency.

The agency last week published its first National Statement of Housing Supply and Demand which found that 11,000 new homes were provided nationally last year, just 73 per cent of the minimum number needed.

However, new figures provided by the agency show the mismatch between supply and demand for housing is far greater in the Dublin area than nationally.

The agency estimates the minimum supply requirement for the Dublin area in 2014 at 5,664 residential units.

But only 3,268 homes were built in all of Dublin city and county last year, just over 57 per cent of what the agency said was needed .

The numbers are spilt fairly evenly among the four local authorities. In Dublin City, 914 homes were built, the largest number of the four local authorities.

In South Dublin, 832 homes were built, slightly ahead of Fingal, the Dublin local authority with the greatest available land bank, where just 809 were built.

The lowest number of homes was completed in Dún Laoghaire-Rathdown at just 713.

The “persistent mismatch” between supply and demand for housing, particularly in Dublin, meant that more homes needed to be built in the coming years than would have been the case if supply more closely matched demand in recent years, the agency said.

Incentives to build

Meanwhile,

Property Industry Ireland

(PII), Ibec’s property sector representative body, has called on the Government to reduce VAT on housing construction, and introduce incentives for building social housing and student accommodation.

In its Budget 2016 submission, published today, the organisation is seeking “targeted tax measures” to make the construction of residential property more financially attractive.

"Unlike in the UK, VAT is charged on houses in Ireland at 13.5 per cent . For the next two years, and in order to help increase supply, this rate should be cut to 9 per cent," PII director Peter Stafford said.

The Government should change housing standards rules to encourage investment in purpose-built student halls of residences .

“This should include making student housing a separate property type in planning and design regulations to encourage development of halls of residences in brownfield or under-developed urban areas.”

State resources, particularly unused lands, should be leveraged to fund the construction of social housing, Mr Stafford said.

“Unused or surplus Government-owned land should be sold and the income ring-fenced for building social housing. This would provide an immediate cash injection into the State’s social house-building programme at a time when it is needed most.”

The planning process should be accelerated, with local authorities required to rule on planning applications for housing developments and social housing projects within six weeks of receipt of the application.

A special unit should be set up in An Bord Pleanála to hear and determine appeals on housing developments within a further six weeks, he said.

Less bureaucracy

“This would mean that high-quality, affordable and well-developed housing projects would not get caught up in bureaucracy but could proceed to construction following a rigorous, efficient, planning determination.”

In relation to commercial property, IDA Ireland should be given a mandate and resources to ensure the provision of commercial property space for the next wave of foreign investment by entering "on a very selective basis" into pre-lettings of offices suitable for major foreign investors, Mr Stafford said.

“We currently risk losing major new investments because we don’t have the appropriate office space available.”