Ibec urges action on affordability as house demand hits 'unprecedented' levels

Business group's survey reveals that people are unable to find or afford a place to live — and it is harming the economy

Ibec has called for "a renewed effort" to tackle rising housing affordability and supply issues.

Housing demand has reached “unprecedented” levels, with “a renewed national effort” now needed to tackle affordability and supply issues, business group Ibec has warned.

Against a backdrop of increasing house prices and a slowdown in supply, Ibec said the Government needs to do more to address the housing crisis. It said Ireland is facing into an extended period of housing supply and demand imbalance.

A third of those responding to an Ibec survey said they would like to be able to buy a home in the next two years, but only 15% said they actually plan to buy.

Price and lending constraints are key barriers

Affordability and bank lending constraints are seen as significant barriers to home purchases, the survey said.

More than 80% of respondents said the Government should introduce more measures to improve the supply of affordable housing, with 56% in favour of the shared equity scheme.

The affordability question has intensified with Permanent TSB and KBC Bank Ireland closing the option for first-time buyers to get an exemption from the Central Bank’s mortgage rules.

Societal challenge 'hampers the economy too' 

“Housing supply and affordability is clearly one of Ireland’s main societal challenges — but it is also a significant constraint for employers and the wider economy from a talent attraction and retention perspective,” said Ibec’s director of lobbying and influence, Fergal O’Brien.

A renewed national effort is required to address the housing issues which are now undermining the quality of life for so many people in Ireland.

"This new research underlines the scale of pent-up housing demand and also identifies the main challenges to home purchase which include a lack of availability in the right areas, affordability and bank lending constraints,” he said.

“The current housing challenges will require a sustained policy focus on delivering an increased supply of high-quality and affordable stock," Mr O'Brien said.