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Lack of Residential Housing Poses a Risk to Economic Recovery

Sep 10, 2015

Chambers Ireland is today (10/09/2015) warning that the lack of residential housing poses a risk to our ongoing economic recovery and is calling on Government to introduce measures to alleviate the housing crisis.

Speaking today following the National Economic and Social Council (NESC) Housing Conference, Ian Talbot, Chief Executive of Chambers Ireland, said: “The economic and social consequences of our inadequate housing supply has not been sufficiently prioritised by Government and it is vital that new measures are adopted to facilitate an increase in supply.”

“A shortage of suitable residential housing has seen rising property prices and spiralling rental costs. This is quickly pushing the cost of accommodation beyond the capacity of most urban workers. For both indigenous and FDI companies, this results in higher wage demands and a difficulty in attracting key personnel to locate in Ireland. Ultimately this will reduce our attractiveness as a location for FDI and the competitiveness of our indigenous industries.”

“It is vital that any measures introduced by Government address the shortage of supply of housing. Schemes aimed at making additional funding available to potential buyers will result in even further increases in house prices as a greater number of buyers chase the same number of properties. To resolve the core issue of supply, we must reduce the cost of building. This can be achieved through temporarily reducing VAT on the construction of residential properties from 13.5% to 9% while also suspending development levies on residential development in areas of strategic importance for a period of two years. We call on Government to take the appropriate action in Budget 2016 so our recovery can be safeguarded”, he concluded.

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For further information contact Sarah Foley, Chambers Ireland on 01 400 4326 or email sarah.foley@chambers.ie

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