80k homes need to be built in next 5 years

Almost 80,000 homes, half of them in Dublin, will have to be built over the next five years to cater for Ireland’s rising population, a Government advisory body on housing warned.

The Housing Agency estimates that, this year alone, 9,500 units will need to be built around the country. Each year, the figure will rise, peaking at a requirement for 20,900 in 2018.

An assessment of future housing supply requirements in 272 urban settlements was conducted out by Future Analytics Consulting on behalf of the housing agency.

It found that:

- In the Dublin region, 37,581 homes will be required over the five-year period. There is an “immediate” requirement for 5,663 units this year, rising to 8,970 in 2018. In Balbriggan, 925 units are needed before the end of 2015;

- In Cork City and suburbs, the housing supply requirement will be 268 units in 2015, rising to a per annum requirement of 1,469 units in 2018;

- Galway City, as well as Limerick City, will experience a shortfall in housing requirements in 2015 and require a total of 2,316 and 2,635 units respectively over the four years to 2018;

- Based on projected population growth, Waterford will have a supply requirement from 2017, with 739 units needed before the end of 2018;

- In Kerry, Killarney is the only settlement with an immediate requirement — 64 units per annum between 2014-2018.

Housing agency CEO John O’Connor said more than half of the housing supply was required for one- and two-person households.

“We need to look at all the housing needs in the country across the lifecycle, from student accommodation, people renting at the early stages of their career, family households, and older people,” he said.

Construction Industry Federation director general Tom Parlon said the requirements set out in the agency’s report will not be met until barriers to house-building are tackled.

“In the report they outline that 5,663 new housing units will be required in the Dublin region this yearm” said Mr Parlon. “That simply won’t happen. The maximum number of new units we can expect to see built in Dublin this year is approximately 2,000 units.

“House builders want to build but, unfortunately, the current market conditions are stopping that from happening. The cost of house-building is still at too high a level. That is because the various taxes and levies have barely been altered since the downturn and do not reflect the current market reality.”

Meanwhile, housing minister Jan O’Sullivan said planning permissions granted during the “boom period” could be reviewed, as the Government intends only stimulating construction where necessary.