Coalition warned on housing crisis

Rent controls and a massive home building drive are needed to ease the housing crisis, Sinn Féin has warned the Government.

The move came as an Oireachtas committee was told that house prices would rise strongly over the next two years and that 51% of purchases are being made with cash payments.

Sinn Féin housing spokesman Dessie Ellis said far more needs to be invested in building social housing to ensure people can access affordable homes, insisting European funding could be used.

Opening a Dáil debate on the issue, Mr Ellis said: “We have identified €1bn of the Strategic Investment Fund which we believe should be put into use immediately to build 6,600 homes for those in need.

“Due to a shortage of housing, rents have spiralled out of control. Dublin rents are up 10% in 12 months and 26% over the last three years. Rents across the State have risen steadily.”

Sinn Féin also called for the creation of housing trusts that would allow local councils to borrow money for house building.

Environment Minister Alan Kelly said the economic recovery was pushing up house prices, as he accused Sinn Féin of trying to “politicise” homelessness, and forgetting how bad the situation is in the North, where the party shares power.

Mr Kelly said the Government realises new public housing stock is needed and an initiative to do this is being finalised to complement the Construction 2020 plans to build more homes. He also said he is reforming the mortgage-to-rent scheme to make it more accessible.

Mr Kelly added that 1,500 people had been helped out of homelessness in the past two years.

The Dáil environment committee heard that half of home purchases were being done with cash.

Members of Property Industry Ireland also suggested that house prices would continue to rise rapidly over the next two years, but return to a more “graduated” scale of increase over the following two years.