ALMOST HALF A MILLION HOUSES NEEDED
Initiative Ireland makes the statement in its new annual housing report, entitled Housing 2031. The report was commissioned to provide a more accurate and consistent view of housing supply and demand over the last 25 years in the Republic of Ireland, to more reliably forecast true housing demand up to 2031.
Padraig W. Rushe, CEO of Initiative Ireland said, “We don’t need to rely on reports to tell us that there is a significant shortfall in housing today, that is self-evident. That said it is important we build an accurate picture of the level of housing demand regionally and how that is likely to change in the coming years, if we want to build a sustainable housing market. While there have been multiple public and private reports issued recently on the subject, most reference data sources they openly acknowledge are significantly flawed.
“To establish a true picture of the market, we have pulled data from multiple independent sources to establish more accurate understanding of housing supply. We have observed regional population and housing trends from the last 25 years and overlaid this information against population forecasts up to 2031. Our goal is to provide a more accurate, reliable picture of regional housing requirements in Ireland to date and into the future, to help ensure the sustainability of our housing and finance industry and learn from the mistakes of the past.”
Key Analysis Findings in the report include the fact that over 40,000 new homes are needed in 2018, or 34,000 annually until 2020 with surplus demand across all regions of Ireland. Fewer than 10,000 new homes were delivered nationwide in 2017 based on Builder Bonds and BER Rating registrations. 50% of Housing Demand will fall within Greater Dublin Area by 2031.
Rory McEntee, Director of Property & Legal at Initiative Ireland said, “2017 saw a significant uplift in the volume of new housing commencements across Ireland but many of these developments, especially larger developments, will take some time to come on the market. If we are going create a more sustainable housing market, we need to focus on accurately forecasting demand by region and supporting developments of all scales across these regions”.
For a more extensive article see our March/April 2018 Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran email@example.com
IRISH HOUSING OUTPUT NEEDS TO TREBLE FROM HERE
The latest Goodbody’s BER Housebuilding Tracker suggests that new output grew by 77% in 2017, but output still needs to treble from here to catch up with estimated demand.
Irish house completions grew rapidly in 2017, according to Goodbody. Some 9,513 new homes were issued with a Building Energy Rating (BER) certificate last year, up 77% year-on-year. Although it is difficult to estimate precisely, Goodbody believes that 1,000-1,500 houses per annum are completed without a BER cert (mainly one-offs).
Using this assumption, there were c.11, 000 units completed in Ireland in 2017. This compares to the 19,271 electricity connections, which Goodbody believes is significantly overstating the level of new build in Ireland at the current time.
The Greater Dublin Area dominates new housebuilding activity. Housebuilding activity grew strongly across the country last year, albeit from a low level. Dublin accounted for 51% (4,848) of the new build last year, with a further 22% (2,094) completed in the surrounding counties of Wicklow, Meath and Kildare. As a comparison, 40% of the population lives in these four counties, according to Census 2016.
For a more extensive article see our January/February Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran firstname.lastname@example.org
HOUSING MINISTER PUT SUBSTANCE TO HIS PLAN!
According to Housing Minister Eoghan Murphy, the Department of the Environment, Local Government spend for 2018 will be €2.394 billion. Within that, housing is by far and away the biggest programme. €1.9 billion will be available for housing next year, an increase of €600m, or 46%.
He says: “This investment is directly aimed at addressing our housing shortage and homelessness crisis. It represents an increase of 62% on the capital side – to build new homes – and 35% on the current side to over €760m – to support homelessness, as well as supporting people into new social housing tenancies.
“Looking beyond 2018, I have secured an extra €500 million for capital investment in social housing in the years 2019 to 2021, which will allow us to increase the Rebuilding Ireland social housing target from 47,000 to 50,000 homes, the figure recommended last year by the Special Oireachtas Committee on Housing.
“That is new money that wasn’t in Rebuilding Ireland to date and which will deliver more social housing homes. And because of the changes I announced at the Housing Summit, the stock of homes that will actually be built directly by LAs and AHBs will also increase.”
In terms of the Build Programme, the Minister says: “We will almost double our social housing output next year in terms of direct build, moving from 2,000 this year to 3,800 next year. In 2015 this number was less than 500. The budget for Local Authorities will increase by over 100% to enable them to meet their targets.
“If you add in Part Vs, vacancy conversions, acquisitions, and long-term leases – 7,900 new homes with all the security and affordability that social housing brings, will be created. Will this alone solve our waiting list problem or meet all of the needs of our people? No it will not. That’s why those figures will increase again the next year, and the year after that, and the year after that.
“We will get to 10,000 new Social housing homes in to the Housing stock: we can’t do it next year – but we should be there by 2020. Which is something again when you look back to our numbers as recently as 2015.
“Until we have those houses built, we will continue to support people in to rented accommodation through the HAP payments. This budget effectively doubles to over 300m and will support 17,000 new tenancies next year.
For a more extensive article see our November/December Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran email@example.com
INITIATIVE IRELAND TO FINANCE €60M
IN RESIDENTIAL CONSTRUCTION
Initiative Ireland has announced that Ireland’s first syndicated property finance platform, which it is scheduling to launch in September, aims to finance €60
million in construction loans to build approximately 250 new family homes over the next 18 months.
Initiative Ireland will enable the company’s private syndicate members to participate in the funding of secured real estate loans across Ireland. Specialising in residential development finance, the company aims to support the construction of 250 new family homes by December 2018, while offering its private syndicate members the ability to earn 3.50% APR to 7.50% APR for their committed funds.
All loans are professionally managed by Initiative Ireland, on behalf of its members from end to end. A minimum commitment of €10,000 is required per loan from members. The company is currently accepting membership applications from private individuals and institutions interested in lending €100,000 or more via its digital platform.
Supported by Enterprise Ireland as a high-potential start-up, and headquartered at NovaUCD, the company was founded in 2015 by an experienced financial services team, with the goal of providing increased financial inclusion, competition and sustainability to the Irish finance market.
Eoghan Murphy TD, Minister for Housing, Planning and Local Government, welcoming the announcement said, “Addressing the housing crisis requires innovation and initiative. It is great to see Irish firms, like Initiative Ireland, responding to the market need with new sustainable solutions. I welcome their goal of making finance available at affordable rates to smaller developers, which is a necessary component if we want to see the activation of dormant sites.”
Padraig W. Rushe, CEO, Initiative Ireland said, “Individuals and institutions can now register for membership at InitiativeIreland.ie and be among the first to gain access to what is an exclusive secured asset class, often available only to Banks and specialist institutions.”
He added, “Moreover, at a time when the country is in desperate need of housing, our initiative will offer competitive returns and terms to our private members, while supporting the construction of much needed family homes across Ireland.”
For a more extensive article see our July/August Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran firstname.lastname@example.org