New report says, 36,000 homes are required annually to meet demand

According to a new survey, in order to meet demand 36,000 homes will be required each year, and the number of homes will be crucial over the next two decades.  

Given the cost of housing, it was proposed to introduce a stimulus package for first-time buyers.

The study undertaken by EY-DKM Economic Advisory Services, on behalf of the Irish Home Builders Association, found that a package needed to be put in place to reduce construction costs and boost the supply and planning process, including lending to first-time buyers.

The study also found that the extra construction costs are mainly due to delays in the planning process and more time consuming in house building.

It is expected that there will be about 4,000 fewer houses this year than there were last year. Last year, 21,000 new homes were built. But this year it is likely to drop to 17,000.

This impact on delivering residential projects while costing design, planning, and construction is not always sufficient to guarantee returns. This makes it unaffordable for the first time buyers.

The expansion of the Help to Buy Scheme and the simplification of the planning system, as well as the lower funding costs for small builders, could all contribute to the start-up of the project, the report says.

State lands also needed to be better controlled with proper evaluation of density requirements and cost-benefit studies conducted, it added.