Government attempts to solve ‘housing crisis’ may create another disaster

SIR, The government has recently launched its ‘Rebuilding Ireland ‘ plan. It is 117 pages long and seems quite ambitious and well meaning. It is packed with worthwhile initiatives. Over the next five years we are going to spend over €5 billion to provide homes for our people. One fifth of these will be social housing. Some of the social housing will be social/ private housing, as the State will hand over public land to private developers so that they can rent these properties to low paid workers. Handing over public money to private entrepreneurs worked well when we did it to bail out developers and risk-takers in the bond market, so why not do so again?

Now, we could get local authorities to supply serviced building land to young couples, as was done in Tralee 50 years ago. It was a service to the community and was probably done at cost. It would introduce a dose of reality into the sale of private sites. Profit doesn’t always have to be king, especially when it’s the roof over a citizen’s head we are talking about. We all share the planet but some people’s share is gross in the extreme. Blessed are the meek? Don’t you believe it. Morality is only for the gullible. The sharks always dominate. We need new thinking if we are to have fairness for hard working families when it comes to basic shelter.

Apparently renting is all the rage in Europe, so we need to learn from them. If, however, I buy my home and you rent for life, then it is just that; I will own my home and I will not have purchased it for some landlord and I will not have to pay a rent when I am on a reduced income in my retirement. Unfortunately a large portion of your pension will be eaten up paying rent then as well.

There is a crisis in Dublin, as property prices have naturally boomed once again. We keep stuffing the capital city with workers and the supply of accommodation is very limited. Hence the massive increase in prices. If the government were proactive in getting public and private jogs to ‘the regions’, we would not have a shortage of building land or houses.

New thinking is required. A semi- detached house in Tralee can cost €170,000 but a similar property in Dublin can cost three times as much. This is a huge burden on young couples who simply can’t save the required 20 per cent mortgage deposit.

Surely, ability to service the mortgage should be the deciding factor in being granted a mortgage? By all means keep the multiple to three and a half times the main salary and less for the second salary, as this would revert to old and tested practice that served us well before the madness of the’ Celtic Tiger’

It is rumoured that a donation from the Irish taxpayer will be given to first time buyers in the next budget. Will this only contribute to increasing the asking price by greedy builders? We had two ‘Bacon reports’ during the last property bubble. The reports have been gathering dust for the past 10 years but they need to be read by minister Simon Coveney and the government. Why make the same mistakes again. Sincerely, Gerry Cournane, Tralee.