Small Firms Association warns of housing crisis

The cost of housing has reached crisis point and is now a significant barrier to job mobility and wage inflation according to the Small Firms’ Association.

The latest housing report from the SFA says 26% of all new houses are being bought by investors.

The SFA's Pat Delaney says there's an indisputable case for increasing people's capacity to buy a home.

He says the situation for first-time buyers is getting worse - not better.

“The price of an average house throughout the country has increased by €20,000 in the last year to €267,000 and that isn't good in terms of public policy making.” Mr Delaney said.

“If we are to be serious about our future then we have to provide accommodation and housing at a price that is affordable to people over a term which makes some sense. Borrowing money for 40 years to buy a home doesn't make sense and it's not where we should be going as a nation.”