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Urgent budget action needed to address lack of affordable housing says Ibec group

Written by Robert McHugh, on 4th Aug 2015. Posted in Ireland

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In a press release issued today, the Ibec group who represent businesses working in the property and construction sector, Property Industry Ireland, have called for decisive action in October's budget to address the acute lack of supply of affordable owner-occupied, rental and social housing which is fast emerging in parts of the country. 
 
Property Industry Ireland have created their Budget 2016 submission which calls for a range of targeted tax measures to make the construction of residential property more financially attractive.

They have also called for the prioritisation of Government resources to fund social housing and revised rules to encourage new student accommodation.

Additionally they claim that IDA Ireland need a mandate and resources to ensure the provision of commercial property space for the next wave of foreign investment. 

PII Director Peter Stafford, "Ireland has been building less than half the number of houses we need to keep up with demand. The Housing Agency suggests we need to build an average of 21,000 units per annum over the next three years to meet demand.

"This year, as in previous years, we will miss the target. Dublin currently needs about 5,600 new houses per year, rising to 8,900 in 2018, but last year the actual supply was under 2,800 units. 

"The only long-term solution to the lack of affordable, quality housing in parts of the country, particularly Dublin, is to significantly increase supply. A failure to provide the right number of houses in the right location will simply increase prices and rents, and erode the quality of life of people trying to find a home.

Central Bank mortgage rules are having a significant impact on housing affordability, and it is therefore vital decisive action is taken to improve the viability of new housing development. Issues such as VAT, regulatory costs and planning delays need to be reformed to boost supply."

Source: www.businessworld.ie 

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