Sunday 21 July 2019

Supply of new homes 'curtailed by Central Bank limits on mortgages'

Stock: PA
Stock: PA
Donal Buckley

Donal Buckley

THE Central Bank's limits on home loans are inhibiting the delivery of new homes, Michael O'Flynn, CEO of developers O'Flynn Group told the annual conference of the Institute of Professional Auctioneers & Valuers (IPAV) in Mullingar at the weekend.

"While many are celebrating the fact the macroprudential rules have succeeded in capping house prices, hardly anyone is looking at how this is inhibiting housing delivery and how it risks the creation of a welfare state."

"We are also creating a social housing-dependent society," he added.

Nevertheless Mr O'Flynn also called for more social housing, saying Government had abdicated responsibility for the provision of housing for those who cannot afford to buy or to pay market rent.

And he said the answer to the supply of affordable units is to "implement land use policies and fiscal policies to support viability and, in return, requiring delivery at affordable prices as the quid pro quo for that support".

Incoming President of IPAV David McDonnell called for the transfer of responsibility for conveyancing from the Department of Justice to the Property Services Regulatory Authority and the setting up of an independent panel of conveyancers across the country who would be specifically responsible for processing all property sales.

Both he and Mr O'Flynn called for reduced VAT on construction as it is an added cost for home buyers. Mr McDonnell said the private landlord who has been the mainstay of the rental market is being forced out by onerous regulation and lack of any incentives.

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