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Ministers Kelly and Coffey welcome the publication of the National Statement of Housing Supply and Demand 2014 and Outlook for 2015-17

Published on Wednesday, 29 Jul 2015

Ministers Kelly and Coffey welcome the publication of the National Statement of Housing Supply and Demand 2014 and Outlook for 2015-17

29/07/15

The Minister for Environment, Community and Local Government, Alan Kelly T.D. together with his colleague Paudie Coffey T.D., Minister of State at the Department of the Environment, Community and Local Government welcome the publication today (29 July) by the Housing and Sustainable Communities Agency of the National Statement of Housing Supply and Demand 2014 and Outlook for 2015-17, a key deliverable under Construction 2020.

Speaking at the launch Minister Coffey said “This document will support a more strategic approach to the provision of housing, and a greater balance to match supply with demand. The Statement is the first of its kind in this country, and presents the most up-to-date information available in relation to housing supply and demand.”

Minister of State Coffey, who has special responsibility for Housing, Planning and Coordination of the Construction 2020 Strategy, thanked the Housing Agency for their work on the Statement, adding that “it will contribute greatly to an overall understanding of housing needs in Ireland, and that the availability of comprehensive data relating to current housing supply and emerging needs, will help ensure policy responses are evidence-based and needs-led.”

The report, which will be published annually, provides key data on overall housing trends between 2007 and 2014, examining the financial and tenure trends over that period. It details affordability issues and explores recent policy developments in this area.  It also provides an outlook to 2017, examining future housing requirements and supply indicators resulting in a minimum requirement for residential units. Key findings and analysis from the first National Statement of Housing Supply and Demand show that:

• The economy is recovering. The unemployment rate is at its lowest level for over five years and GDP grew by almost 5% in 2014 and is predicted to grow by 4% this year.

• Population is growing. An increasing population and a declining household size will increase demand for housing units.

• Housing costs are increasing. The median price paid for a residential property in the state in 2014 was €152,500, up from €140,000 in 2013. The first half of 2015 has seen asking prices for residential properties in some parts of Dublin levelling off, while increasing by 9% outside the Capital. 

• Rents in the private rented sector have increased over the year, particularly for apartments in Dublin. The Private Residential Tenancies Board Rent Index found that at a national level, average monthly rents were 6.9% higher in Q1 2015 when compared with Q1 2014 (9.6% in Dublin).

• Affordability had eased during the economic downturn, but increases in house prices and rent levels, in the absence of corresponding income rises, has reduced housing affordability, particularly for those on low incomes, single earners and those in high demand areas, such as Dublin.

• There are signals of increased activity in the residential market with the number of mortgage approval rates and mortgage drawdowns both going up. There has been an on-going decline in the number of mortgages in arrears, including those in arrears for 90 days or more.

• Supply is steadily increasing, but needs to increase more to meet demand. There was a 33% increase in completions in 2014 compared to 2013. Completion figures for the first three months of 2015 show a 25% increase on output comparing the first three months of 2014.

• The Residential Land Availability Survey shows the total area of available zoned land nationally is capable of supporting over 414,000 housing units.

Outlining key Government initiatives to stimulate housing supply, such as €3.8 billion investment in social housing, and forthcoming legislative changes under planning law which will see the retrospective application of reduced development contribution charges, the introduction of a vacant site levy, and new and clear Part V arrangements for the delivery of social and affordable housing, Minister Coffey acknowledged that there are challenges ahead but that the Government is committed to tackling the issues head-on. The Minister called on all stakeholders to “redouble efforts to boost supply and focus on delivery of quality, sustainable homes for the future.”

The full Report can be accessed on the Housing Agency website at www.housing.ie  For further information, contact: Ciara O’Connor at the Housing Agency Communications Office: 01 6564171 or communications@housing.ie

 

Press  Office Tel: (01) 888 2638  (direct) (01) 888 2000 E-Mail: press-office@environ.ie Web site: www.environ.ie Twitter:@EnvironPress

 

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