Irish Examiner view: ‘Economic shock’ looms over housing sector

A survey by the housing website myhome.ie suggests that an 'economic shock' could have a sharp impact on the housing market

'The prospect of even a slight cooling in house prices may seem encouraging to those still struggling to get on the property ladder but, as we all know, the housing crisis is a multifaceted one. If banks are slow to loan money that is one challenge, but lack of supply also remains a problem.' Picture: Denis Minihane

There has been a steady stream of articles explaining exactly what tariffs are, and what they mean for consumers all over the world, ever since US president Donald Trump hit upon them as the solution to all of America’s ills. 

The abbreviated version of those articles — that such tariffs are a harbinger of bad times — may already be passing its sell by date, as we seem to be moving swiftly past the “harbinger” stage.

A survey by the housing website myhome.ie suggests that an “economic shock” sparked by a trade war resulting from these tariffs could have a sharp impact on the housing market. There is a possibility that rises in house prices may slow in such an event, while the general threat involved was spelt out by economist Conall Mac Coille. 

He said: “The risk here is that Ireland’s relatively thin, illiquid housing market — reliant on those at the top of the income distribution — could be exposed to a sudden negative ‘economic shock’, such as the risk of a US-EU tariff war.”

Readers with long memories will recall similar “economic shocks” occurring after the September 11 attacks in 2001, when the rise in house prices slowed considerably.

What makes this warning notable is Mr Mac Coille’s day job as chief economist of Bank of Ireland.

Seeing the fragility of the Irish housing market acknowledged is one thing. Seeing that fragility remarked upon by one of the banks, a sector centrally involved in creating the conditions which led to the last property crash, is another.

Anecdotal evidence suggests some Irish financial institutions are already becoming more hesitant about loans to customers working in industries seen as particularly vulnerable to a looming trade war.

The prospect of even a slight cooling in house prices may seem encouraging to those still struggling to get on the property ladder but, as we all know, the housing crisis is a multifaceted one. If banks are slow to loan money that is one challenge, but lack of supply also remains a problem.

The myhome.ie survey also found the number of properties currently for sale in Ireland is 10,800 — a record low. This is hugely concerning in and of itself, even before we feel the full effects of tariffs.

Children failed by the system

Yesterday, Hiqa published its 200-page review of the use of
implantable springs in spinal surgeries at Temple Street Children’s University Hospital in Dublin, and it has already had a seismic effect in the health sector.

The report is blunt in its findings: It is customary with such reviews to find phraseology which is equivocal and cautious, avoiding definitive pronouncements. That is not the case here, with Hiqa finding that the use of metal springs during spinal surgery on children in CHI at Temple Street was “wrong”: It found that non-CE-marked springs were implanted into three children between 2020 and 2022.

The review was also critical of the way information was shared with parents of children before surgeries, describing this as “wholly inadequate”, adding: “...while CHI was operating within the national policy for consent, in these cases, consent for these surgeries was not fully informed”.

Dr Jim Browne, chairman of the board of CHI, has already resigned. He apologised to the children, young people, and families who had “been failed by the care they received”.

This extraordinary report raises any number of searching questions about procedures and governance when it comes to these surgeries, and about oversight within the health service as a whole.

That leads us to the wider issues raised by this report, such as the fitness of CHI to manage the merging of facilities with the new National Children’s Hospital. The hospital is already the subject of considerable controversy when it comes to costs and delays, but this review presents an entirely new set of concerns to consider regarding CHI’s involvement in the project.

However, it should not be forgotten that beyond broad questions of procedures and facilities there are children at the heart of this situation — children who have been failed by the Irish healthcare system when they are at their most
vulnerable. They should be the priority now, just as they should have been from the start.

Best wishes to Richard Boyd Barrett

Readers of all political persuasions will be familiar with People Before Profit TD Richard Boyd Barrett, whose combative Dáil persona and strong opinions make him a recognisable figure in the political landscape. As with anyone associated with passionate beliefs and positions, Mr Boyd Barrett can be a polarising figure, but even his strongest opponents will surely wish him well in his latest challenge.

This week he announced that he would be stepping back from politics to receive treatment for throat cancer, having been diagnosed after noticing a swelling on his throat while shaving late last year. Characteristically, in a radio interview this week, he encouraged younger people to avail of the HPV vaccine to counter such illnesses.

It was good this week to hear politicians of all parties, from the Taoiseach and Tánaiste on down, wish Mr Boyd Barrett well with his treatment. Politics is a tough business but the strictures of common decency transcend ideological divisions or differences of opinion. It is encouraging to see the support being offered to Mr Boyd Barrett by his peers, and the Irish Examiner wishes him the very best in his treatment.

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