Housing issue needs deeper understanding of livingrequirements

HOUSE prices are on the increase again. This is in spite of the Central Bank’s lending rules which had been aimed at curbing inflation in the property market. The average three-bedroom house price – the standard used to assess house prices nationally – has increased across the board according to the Real Estate Alliance’s (REA) Average House Pricing Survey. In some areas the price rise is reaching as high as one per cent per calendar month.

Initially it was felt that the Central Bank’s mortgage deposit rules had stemmed the tide of house price inflation due to a requirement for buyers to cough up larger deposits.

However, agents are now reporting that buyers have returned to the market having achieved the required level of savings but with low levels of housing supply – a level that has hit a 50 year low according to some estate agents – prices continue to rise.

If the scenario was to escalate, it would spell disaster for an economy still in the process of finding its feet.

Aside from the macro-economic aspects involved, the social implications are much worse with an entire generation now facing the prospect of never owning their own property, a situation that runs contrary to the cultural attitudes of home ownership in Ireland.

Rising house prices are disastrous for people living in rented accommodation who face the dual dilemma of rising rents and unaffordable property prices.

More houses are needed but to just randomly build houses without due regard for the social, spatial and economic landscape is ludicrous. Gone are the days when the standard family home was all that was needed as today we live in a society where people have different living circumstances. More people are choosing to live alone, have smaller families, or simply wish to be prudent when purchasing a property that is conducive to their living requirements.

We need a much more diverse input from developers and government departments who claim to have their finger on the pulse of the nation’s housing strategy. The Rebuilding Ireland action plan should help trigger more building but it may be too late to reverse the problematic trends. We must devise a more rounded housing strategy with quality properties that are affordable.

A greater focus on properly-sized apartment spaces and one-bedroomed properties is one strand. This would fulfil the needs of people with more humble aspirations, plus they would also be quicker and cheaper to construct.

In short, one must assess the housing requirements and build accordingly, not randomly.

Meanwhile, the cost of construction in Ireland remains one of the highest in the EU and this needs to be tackled if we’re to achieve a steady flow of new homes.

Admittedly, there is no one size fits all approach to the housing crisis. But this shouldn’t prevent us from applying some common sense. Times have changed and so too have our living requirements. It’s time this came home to roost.