Lack of land is hindering badly needed housing projects

AVAILABILITY of land that is suitable for social housing is a continuing to stymie efforts at solving the housing crisis. Unless land becomes available which would enable wholesale development akin to levels achieved in the 1950s and ‘60s, the current impasse is expected to prevail.

The critical need for land supply is already inhibiting the kind of housing construction that should be underway to try and meet demand. Private builds and low-scale housing projects are still too much aimed at the speculative market with profit as the primary motive for land sellers, developers and mortgage lenders.

A few years ago the tag ‘ideal starter home’ was used widely as a selling point but this term has faded to a large extent as it sounds at variance with reality. Most people right now would consider any house they’re lucky enough to afford as a longterm investment, mainly due to the chronic shortage in supply.

A recent government report entitled ‘Urban Development Land, Housing and Infrastructure: Fixing Ireland’s Broken System’ identifies key areas in need of redress and chief among them is the supply conditions of land. The report highlighted two main areas: a. the decisions of land owners on whether they will sell, develop or hold their land; and, b. decisions of public authorities on zoning, planning and infrastructure.

It cited that in cases where land is already zoned for housing, there is no guarantee that it will be used within a reasonable period. The report also stated that, to date, there is limited housing development on land sold by NAMA. In short: the supply conditions of land creates a more speculative development scenario that is failing housing supply. It stated that this creates land ‘acquisition and hording’ which can make the housing system ‘risky, unstable and unaffordable’.

Among the report’s recommendations is that publicly owned land and sites be used to start the transition to a new system of land management and urban development. It stated: “It is vital that the land be put in the hands of actors who will develop it in a timely and appropriate manner, rather than seeking to maximise state revenue by selling it outright, without regard to when and how the land will be developed.”

So long as land earmarked for potential developed is allowed maintain a ‘profitability first status’ we are never going to see the kind of large scale social housing projects take place. Holding on to land for a ‘best price’ scenario is far from new, but if the government and local authorities really mean it when they say wholesale housing needs to be built, then new and more rapid solutions are needed.