Speeches
Speech by Fiona O'Malley on Housing Provision
Speech by Fiona O’Malley T.D.Dáil Éireann 20th April 2005 on Private Member’s Motion on Housing Provision
Ceann Comhairle, I appreciate the opportunity to speak on the subject of housing supply. I cannot stress enough how important a topic housing is across this country, and in particular for younger people. I noticed recently that RTE held an on online poll about the cost of housing in Ireland. There was a comment section and one person contributed the following: ”I am 23 years of age. I make €27,000 a year and have done for the last two years. I'm single. I don't have rich parents to back me up. The mortgage advisor asked me to call back in two or three years. He might have a little better news then”. That young man was from Leitrim.
I know this doesn’t encapsulate all the complexities that surround the whole housing issue, but I felt it was important that a real life expression of exasperation, especially from a young person should form part of this discussion.
The public want to know what we are doing about this issue. I want to use my few minutes Ceann Comhairle, to let them know. Not via some litany of policy moves and all the rest. Just to let people know that contrary to what some have said, we recognise the problem. We know it’s tough for people and we are genuinely working to make things better.
We stated that if elected we would provide good quality affordable housing through a comprehensive housing policy to meet the growing housing demands over the period 2002 –2007. That’s the jargon. What does it mean?
We know the problem. The average house price is over 255,000. It has gone up 18,000 in one year. The average house price was 75,000 in 1996. I am reluctant to litter speeches with statistics. But these numbers result in social engineering.
(Yes social engineering.)
The effect the housing issue is having on young people is serious. We know from the last Census that 42,500 over 30’s are living with their parents. There is nothing essentially wrong with this of course, but we can guess that in most cases this is not the most desired situation for either the over 30’s or their parents.
We aim to ensure that supply is responsive to the level of demand. We know that the demand for housing has spiralled, so we try to encourage more construction.
I will say at this point Ceann Comhairle that the public do not want to here that this is a problem created by our own success. They want to know what have we done to meet the increased demand.
Well, in 1997, the number of houses built was 38,000.
In, 2000, it was 50,000.
Last year it was 77,000.
DKM consultants predict a similar total for 2005.
So in our primary objective, ensuring that supply is responsive to demand, our policies are working. As a result of the work we are doing house prices have moderated somewhat from their high levels in the late 1990s. But, problems remain.
Two particular areas concern me. First is the prevalence of investment properties. Our policies are working, and the increased number of houses is meant to help people like the young man from Leitrim on 27,000 per year.
I am worried by a recent ESRI study which estimated that 12% of the 77,000 dwellings built in 2004 are either holiday homes or are empty. This must be addressed.
Second is State provision of affordable housing. It is obvious that increased supply will help temper price rises, and help certain sections of society. But it won’t help everyone. There are those whose annual income is nowhere near the 27,000 per annum mark. We spent 144 million on affordable housing in 2000. We spent 266 million last year. While we must continue with our policies to increase housing output, we must also increase the amount the State spends on providing housing. The level of social housing being provided is the highest for a generation, but must keep going. I know it is envisaged that 12,000 more affordable homes will be completed by 2007. They must be completed.
Ceann Comhairle, I want to make reference briefly to a topic often raised when discussing affordable housing for young people. The so-called first-time buyers grant. What a misleading title. The fact is that this grant was not available to many, many young people. If they wanted to purchase a second-hand home, a large part of the market, they didn’t get the grant. Simple as that.
There is another myth I would like to dispel at this point Ceann Comhairle. According to some, we have presiding idly over the economy while we have let the housing problem grow out of control. The truth is that almost 30% of all the homes in this country have been built since 1997.
Access to housing isn’t all about supply. The problem for many people, particularly younger people, is obtaining a mortgage. The way to provide better mortgage services, of course, is to create more choice. In times past, once a young couple had visited two or three different banks, perhaps on the same street in their town, perhaps all beside each other in some towns. Once the couple had done that- that was it. Particularly if they wanted to purchase affordable housing under a government scheme. We have made progress on this.
In 2004, we brought forward new legislation that allows private lending agencies to provide mortgages to people applying for affordable housing schemes. The same legislation allows the direct sale of affordable houses from builders to eligible persons. The public, and maybe some members of this House, need to know that we are working to help people trying to buy a home.
I know Bank of Ireland have introduced a new mortgage product specifically for persons seeking to buy affordable housing. I hope that discussions underway with other lenders provide more of these policies.
Before concluding Ceann Comhairle, I want to give special mention to homelessness. It is true that much of the discussion is focussing on people on decent incomes not being able to buy a home. I think we need to consider people on little or no income without any roof at all. The 42,500 over 30’s living with their parents that I mentioned earlier, are in a heavenly predicament compared to those who are homeless altogether.
It is difficult for some people to understand why anyone would be homeless is this day and age. True it is a complex issue, like all the others. But it is not a simple as being a case of people in power doing nothing.
· €51 million has been made available for accommodation and services for homeless persons
· The Department of Health provides a further €20 million per year for the care of homeless people.
The problem persists, so we must do more, Ceann Comhairle.
Tackling homelessness has been the subject of many strategies, particularly since 2000. There have been all sorts of initiatives and schemes, involving many, many Departments and agencies. I am glad that the effectiveness of all of these is being reviewed at present by Fitzpatrick Associates. I hope that whatever recommendations they make are reasonably addressed.
In concluding Ceann Comhairle, I’ll say this. The provision of affordable housing in this country is a serious problem. Even for those on good incomes. We are working to make things better. We are ensuring that as demand increases, so does supply. This is the most effective way of bringing down price. We are providing more and more money for affordable housing schemes. We are making moves so that it is easier for people to get mortgages. This message maybe ignored or just not getting through, but it is important that it is put on the record.