Irish households' €160bn in savings could be unlocked to fund new homes – SCSI

State-backed housing investment vehicle could release some of the €160bn, most of which is in low-interest current accounts

Society of Chartered Surveyors Ireland president Gerard O'Toole said: 'Access to finance remains a major barrier, especially for small and medium-sized developers.'

The Government should establish a State-backed housing investment vehicle to allow households to invest their savings in housing development, the Society of Chartered Surveyors Ireland has said.

The society said such an initiative, similar to schemes operating in countries such as France, would enable the Government to put long-term multi-annual housing plans in place while also facilitating investment in much-needed infrastructural projects.

“Irish households’ bank deposits amount to nearly €160bn, mostly in low-interest current accounts,” said the society’s new president, Gerard O’Toole.

“At the same time, access to finance remains a major barrier, especially for small and medium-sized developers.”

Mr O’Toole pointed out that the State is by far the largest investor in Ireland’s housing delivery — it allocated over €5bn to housing in 2024.

However, he said that this level of public investment is not sustainable in the long term and the State needs to explore alternative and diversified funding streams.

“A savings fund of this nature would underpin long-term planning by providing the multi-annual funding commitments housing projects require,” he said.

“It could also support longer-term budgets for several state housing schemes, including help-to-buy and vacant property grants, which are often subject to annual funding reviews and decisions.”

The Society of Chartered Surveyors Ireland (SCSI) also said the new Housing Activation Office needs to commence its work urgently on clearing the many blockages which are impeding the delivery of new housing.

“The SCSI is calling for reform of the utility connection processes and earlier engagement by Uisce Éireann and the ESB with home builders to reduce delays and prioritise essential connections for housing ready for occupation,” Mr O’Toole said.

“That is why we believe the terms of reference for the Housing Activation Office must facilitate greater collaboration and transparency. Regular and effective engagement with key industry stakeholders will be key to the success of this office.”