Challenges exist around housing affordability, O’Brien says

Housing Minister Darragh O’Brien views a show house at the Churchfields housing development in Mulhuddart, Dublin (Brian Lawless/PA)

The Government is still dealing with “challenges” around housing affordability, a minister has said.

It comes after the latest figures from the CSO revealed that residential property prices have risen by 10.1% in the year to August.

Defending what he described as progress made during the lifetime of the Government, Housing Minister Darragh O’Brien conceded “challenges remain” around affordability.

Housing minister Darragh O’Brien said the Government has ‘turned a corner on housing delivery’ (Brian Lawless/PA)

The minister was speaking to the media while visiting the Church Fields affordable housing development in Mulhuddart, Dublin, on Friday, where he said homes were available from €263,000.

He said: “We need to get supply up. When I took over as minister, this State was building about 20,000 homes a year. This year, I’m projecting it will be in the high 30,000-40,000.”

He added that the Government was dealing with more than a decade of unmet and pent-up demand.

Mr O’Brien said: “I’m confident now we really have turned a corner on housing delivery and we’re seeing the momentum around the country.”

Niall Corkery, a statistician with the CSO, said: “Outside Dublin, house prices were up by 9.5% and apartment prices increased by 10.1%.

“The region outside of Dublin that saw the largest rise in house prices was the border (Cavan, Donegal, Leitrim, Monaghan, and Sligo) at 15.1%, while at the other end of the scale, the Mid-East (Kildare, Louth, Meath, and Wicklow) saw an 8% rise.” 

 In the South-West, incorporating Cork and Kerry, meanwhile, prices have risen 9.1% in the last year.

This further evidence showing the rising cost of housing may only heighten the pressure on the Government, which is expected to deliver its updated housing targets in the coming weeks.