Surplus housing ‘threat to economy’

THE pill has yet to be invented to cure the economic hangover from which Ireland is suffering after the collapse of the property and banking sectors, says a leading economist.

The overhang of surplus housing will hamper growth not just in construction, but in the economy as a whole, UCD economist Joe Durkan told the audience at the Kenmare 2009 conference in Kerry over the weekend.

“Even when the sector improves, housing demand is unlikely to increase to warrant the construction of 63,000 houses, the average number constructed per annum from 1999 to 2008 against population-based needs estimates of 40,000-45,000,” he said.