How Ireland’s housing market is coping
The Institute of Economic and Social Research has analysed the housing market in Ireland. The experts started by looking at the factors affecting supply. They looked at the regulatory framework, economic processes and production characteristics.
In addition to Ireland, the report included an analysis of the housing sectors in England, Scotland and Wales. This made it possible to compare the conditions for development in different markets. According to the document, one of the limiting factors for all the designated countries is the financial segment. However, this is most pronounced in the residential property sector in Ireland. The industry is unable to provide adequate levels of lending to maintain high levels of activity in the market. As a result, there is a lack of resources to meet demand. Government support may be the key to solving this problem. Increased public investment will boost the supply of affordable housing.
Experts also pointed to the labour shortage in the construction industry. The shortage is most acute in the UK and Ireland. One of the reasons for this problem is the impact of Brexit. Overall, the UK’s exit from the EU has created difficulties in the supply of labour and construction materials.
The countries analysed have similar national housing planning systems. However, they are underperforming, suggesting a need for change. In Ireland, each local authority has to approve its plan. However, in the current market conditions, a single decision-making system works better in this area.
Outlook for the local housing market
Despite some problems, the construction sector in Ireland has a lot of support from the government. And with an improved planning system, there are good prospects for the local housing market.
The global economic crisis has had a negative impact on the property sector. This is forcing developers to look at ways of optimising costs. These could include:
– adopting modern construction methods;
– the use of innovation;
– using modular panels and lightweight steel frames;
– working with cross-laminated timber and insulated panels.
In addition, there is a need for change in the land allocation system for development. Currently, this mechanism does not work effectively in Ireland, leading to speculation in land allocation. This increases the overall cost of production.
Experts believe meeting climate change targets could provide a new stimulus for the housing sector. For example, Ireland’s environmental strategy for 2030 includes the following measures:
– upgrading 500,000 homes to BER B2 level;
– installing heat pumps in 400,000 existing homes and 280,000 new homes;
– moving to low-carbon building materials.
Achieving these goals will require new approaches to housing. And that, in turn, will help boost activity in the sector.