Builders need affordable serviced sites

THE GOVERNMENT spent over €250 million on rent subsidies last year, money which could have been better invested in affordable local authority homes, builders say.

If local authorities across the country provided serviced sites, developers throughout the country would build a whole lot of houses for that kind of money, Irish Home Builders Association Chairman, Matt Gallagher, said yesterday.

"Our industry is well aware of particular housing needs not being met. These needs can be met if the Government and local authorities adopt a more dynamic approach to involving our members in meeting the demand," he told his annual conference in Kilkenny.

Affordability is a key factor in the housing market. It is of direct concern to builders as well as buyers.

All the interested parties need to focus on the various elements contributing to the cost of housing. Builders need serviced sites at a reasonable cost, Mr Gallagher added.

"The focus of political action should be on increasing the volume of serviced land available for builders.

"We have been saying for years that one of the most effective ways of controlling land prices is to increase the supply of land available for building.

"We believe that the Government must do its part by ensuring that re-zoned lands are serviced promptly to increase the supply.

"The IHBA and Construction Industry Federation (CIF) are willing to explore ways in which through, either joint ventures or PPP's, we can help expedite this infrastructural work.

"Local authorities should move to enter the market more effectively in partnership with the private sector. In many parts of the country, the market in serviced land is not functioning efficiently.

"More players, both public and private are needed to create a genuine market," he said.

The planning process at local and national level urgently needs reform, he said.

"Planning departments in local authorities are not delivering the service which our members and the construction industry require."