O’Keeffe - hoarding of NAMA sites is ‘stymying’ house building in Cork
FIGURES obtained by Fianna Fail have revealed construction work has commenced on converting only a fraction of the potential NAMA housing units across into habitable homes.
With the country firmly in the grip of arguably the worst housing crisis it has ever faced, the figures have angered Fianna Fail Cork East TD Kevin O’Keeffe, who said the hoarding of NAMA sites was “stymying housing construction in Cork.
He pointed out that of the 8,899 units across the city and county, just 62 are currently under construction.
“At a time when there are hundreds and thousands of people looking for affordable housing, it is shocking to find that so many potential units are available but not being utilised is shocking,” fumed Deputy O’Keeffe.
“This is a deplorable waste of an opportunity to deliver more housing units for our people,” he added.
He blamed the slow rate of progress firmly at the government’s doorstep, pointing out that the cost of land was a “key determinant” holding back new construction.
Deputy O’Keeffe said that despite this, the Department of Finance was icentivising investors to sit on sites and not develop them through the Capital Gains exemption for lands brought prior to the end of December 2014 and held for seven years.
“In Cork, there is essentially no construction at any sites sold by NAMA debtors, a direct result of government housing policy and deference to international investors,” he said.
“Land Hoarding is clearly holding back supply. Fewer than 18,000 new units will be built this year, including just 4,000 apartments, when we need in region of 50,000 to make a dent on affordability, rent and price inflation.”
Deputy O’Keeffe said he and his party colleagues would be calling on the government to reduce the holding period on sites to fours years, which he said would allow investors the opportunity to sell them now rather than in 2018, 2019 and 2020.
“I also strongly believe that a new site tax is required to encourage the use of empty sites. The vacant site levy, which will not come into effect until the start of 2019, will be nowhere near enough to discourage land hoarding in a growing market,” said Deputy O’Keeffe.
“Utilising more of these potential housing units will help reduce the growing private rents that are crippling young professionals and couples”.