The impact of Covid-19 on our housing sector, especially as a result of restrictions on construction, has been profound, and the increasing imbalance between housing supply and demand is now more acute than ever.
The housing supply shortage remains a critical concern. Despite last year's budget allocation of €5.3bn to the Department of Housing, Local Government and Heritage (the highest budget allocation received), the level of new housing supply during this period was slightly over half of what is required each year. The SCSI has carried out several studies on the viability and affordability of new housing for purchase and rent. Our most recent research, a joint survey from the SCSI and the Central Bank of Ireland, highlighted that property prices nationally are set to rise by 4-6% in the next 12 months. This is on top of continuous property price growth over the past seven years, where property prices are now close to 90% of pre-recession levels in 2012/13. The SCSI has assessed that if new housing output is maintained at current levels, it will be approximately 2031 before new housing supply and forecast demand will reach equilibrium.
Due to this critical societal challenge, our 2022 pre-Budget submission focuses on a single theme: affordable and viable housing delivery.
Our submission is divided into two sections:
1. Increasing the supply of homes.
2. Affordability of residential property.