Suite of measures needed to deal with rising demand for residential property in Dublin – Noone

Fine Gael Dublin Senator, Catherine Noone, has welcomed the recent announcement that AIB is establishing a €350 million development finance fund for house building, but added that a suite of measures is needed to deal with the rising demand for residential property in the capital.

“Rents are on the rise and purchase prices are rising rapidly in the Dublin area. The latest figures from the CSO show that Dublin house prices rose by almost 16% last year. While a recovery in the property market is welcome, we need to ensure young families aren’t once again priced out of the market.

“AIB’s plans to make a €350 million fund available for the building of new homes in Dublin, Cork and Galway should help encourage the construction of some badly needed developments in areas where demand is very high. But I believe a suite of measures is needed to help provide family homes, such as

a vacant site tax, the provision of more housing supply by Councils across the country, and funds similar to that being provided by AIB.

“With the most recent Daft report showing that the average rent in Dublin is now more than €1,200, with an increase of 20% in three years, it is clear that demand is outstripping supply. The rental market is now overheating, and we need to work to ensure that those who want to buy, can buy.

“It is important that the terms and conditions around the AIB fund and other development finance will need to reflect the current practicalities of the market. There is no point promising this level of funding if it comes with strings attached relating to equity being put forward by Irish construction companies, which simply don’t have access to large amounts of equity. I would urge AIB to keep this in mind as Dublin needs a new housing supply to come on stream as soon as possible.”

ENDS