Housing crisis calls for joined-up policymaking
House price inflation doubled in the first half of this year in the busiest market for homes, Dublin. It might be that the situation would be even more out of control without the Central Bank mortgage rules, though it is doubtful.
The fundamental issue is that there are too few homes in the capital for the people living there. That is increasingly true across much of the rest of the country.
Evidence from the construction sector is that builders parked desperately needed housing projects when the Central Bank plans were announced. That was a rational response, but could hardly have happened at a worse time for our society and economy. As the Simon Community's Sam McGuinness summed it up, there are too few homes now for the financially strong and none for the weak.