Report warns housing crisis is threat to economic growth

Report warns housing crisis is threat to economic growth

A new report warns that the housing crisis is now the biggest threat to our economy.

The latest outlook from Friends First predicts that average house prices will continue to rise by at least 10% in 2019.

It comes as those hoping to get on the property ladder queued overnight in the hope of buying a home in Hansfield in Dublin 15 days before they go on sale.

PJ Delaney, owns the local newsagents in nearby Ongar Village, says it is a sign of the times.

Mr Delaney said: "I think it's sad really that people are in such a desperate want for a roof over their head, but unfortunately that is the times we live in now.

"With the lack of so many developments at the moment, this just what people have to do in order to get a roof over their head."

The Friends First report cited the housing shortage as the biggest economic and social issue in the country, and said it is likely to continue for some time, even if barriers to increase supply were removed.

Jim Power, Chief Economist with Friends First, said: “The pressure on Ireland’s corporate tax system; the inordinate economic and financial dependence on a small number of very large companies; the damage that the housing situation is doing to competitiveness; and the impact that inflated measures of GDP are having on the fiscal parameters are key risks and challenges that will need to be monitored and managed very carefully in 2018 and beyond.

"A proper risk assessment is required, and one which ignores political imperatives.”

They highlighted a shortage of labour in the construction sector as one of the main issues for the economy.

The report said: "Without adequate labour supply, housing needs will not be met. Housing is a key element of national competitiveness, a fact that has been highlighted by recent CSO data."

- Digital Desk

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