Government needs to tackle undersupply in housing- O’Sullivan

Labour Housing spokesperson, Jan O’Sullivan TD, has said the latest CSO house price figures highlight the urgent need for action on the supply of homes across Ireland.

The figures show house prices rose nationally by just under 12 per cent in the past year, the fastest increase in more than two years.

Deputy O’Sullivan said:

“While these figures do not come as any major surprise they are none the less alarming, and highlight once more the chronic issue of undersupply in the residential property market.

“With house prices continuing to spiral it is clear that current Government strategy is not working.

“There are several ways in which the Minister can take immediate action to address this crucial issue of supply.  For one it can bring forward the Vacant Site levy by a year to tackle the issue of land hoarding by developers.

“It is also high time to consider a vacant homes tax for properties that are lying empty. We know there are around 200,000 of these dotted around the country for example, which could be tapped as a means of addressing  the homelessness crisis.

“The other glaring omission in the Government’s strategy is the complete lack of will to introduce a national Affordable Housing Scheme.

“All the evidence shows that the houses that are being built in urban areas, especially our cities, will be too expensive for low and middle income households.  This simply cannot go without action especially where the land is publicly owned and/or where the state is investing in infrastructure so that sites can be developed.

“The common good and the need for affordable homes demands that excessive profits are not made on the back of public investment and struggling families.”