Housing Agency warns private rental supply will soon collapse
Martin Whelan, Housing Agency CEO, will tell the Oireachtas Housing Committee today that there are significant 'capacity constraints' on the construction sector as the country tries 'to scale up to 50,000 new homes each year'.
Mr Whelan will tell the committee this will require an extra €7billion a year while the cost of soaring equity within the housing market has increased by one fifth. Pic: Getty Images
The committee will also be told that between 2018 and 2022, institutional investors helped pay for 2,000 private rental homes each year, but this has plummeted.
'Since 2023, there has been almost no new forward investment deals in Ireland, which means the supply of private rental units will fall significantly,' he will tell the committee.
A report by the Department of Finance last year on residential development found that €20billion a year is needed to build 50,000 homes each year, with €16.9billion of this coming from institutional investors who told the Government to ditch Rent Pressure Zones (RPZs) if they want their money. Pic: Crispin Rodwell/Bloomberg via Getty Images
Institutional investors have highlighted the country's RPZs as a barrier to investing here. Last week, the Cabinet agreed to extend RPZs nationwide but also to allow rents to be reset when a new tenancy begins.
Emergency legislation is due to be agreed by Cabinet today to speed up the process in a bid to prevent thousands of renters facing rent increases before their tenancy is covered by RPZ rules.
Mr Whelan will tell the committee: 'The availability of this type of equity financing is particularly important for meeting supply targets for residential development over the medium term.' Pic: Getty Images
Mr Whelan will point to investors' equity, noting its 20% increase is impacting the viability of building projects.
Mr Whelan will tell the committee that the 'high cost environment' for construction, particularly for apartments, 'remains a major obstacle to delivering viable homes' for both the private market and cost rental schemes.
The Housing Agency is delivering targeted subsidies, low-cost debt and equity programmes designed to help bridge this viability gap.
The committee will be told that between 2023 and 2024, the number of planning permissions granted for apartments decreased by almost 39%, while the number of house approvals was down just 2.7% over the same period.
Mr Whelan will say: 'Between 2018 and 2022, fewer than half the number of apartments granted planning permission were built. Over this period, there were 44,000 apartments built compared to 95,000 apartments granted planning permission.'
The committee will be told that a three-bed semi costs €450,000, a two-bed apartment in a suburban location costs just below €550,000, and a two-bed apartment in an urban location costs around €600,000. Capacity constraints will also be flagged as a major issue.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
an hour ago
- The Journal
Millionaire Áras hopeful launches presidential campaign in the Shelbourne - here's what he said
THE MILLIONAIRE MILLENNIAL Gareth Sheridan chose the Constitution Room, the birthplace of the Irish Constitution in 1922, in the Shelbourne Hotel in Dublin as the location to launch his presidential campaign today. It's the second presidential launch we've had this summer, with the pharma tycoon worth €16 million, fielding robust questions from the Irish media as he enters the race. With his wife Heidi and his campaign team seated at the large Cabinet-style table next to the podium, the pharma tycoon (a terms he says he wouldn't use to describe himself) answered questions about the range of controversies that have emerged since his name first entered the race last weekend. The entrepreneur and former CEO of US-based company Nutriband, which describes itself as a 'values-based company' that manufactures abuse deterrent transdermal patches aimed specifically at opioid and fentanyl abuse, took questions on his finances, a united Ireland, the Triple Lock, migration, the Occupied Territories Bill, and housing. Gareth Sheridan answering questions from the media in Dublin today. Christina Finn Christina Finn So what did he have to say? Here's a rundown: How much money does he have? Sheridan's net worth right now is around €16 million and he has €500,000 cash in the bank to fund his presidential campaign. If he wins the election, he would likely place any Nutribrand company interests in a trust fund. He rents an apartment in Dublin with his wife and daughter, paying out over €3,000 per month. He drives a 2021 used Mercedes hybrid. What councils does he claim he has in the bag in terms of a nomination? Sheridan claims he has Tipperary and Laois councils backing his nomination, but stayed coy on the other two councils required. In order to run for president, a person needs at least four local authorities to nominate them or at least 20 Oireachtas members. Would he sign the Occupied Territories Bill into law as president? Sheridan said he would have 'no issue whatsoever' in signing the bill into law. Once the legislation is passed by the Oireachtas, the president must sign it into law. The former pharma boss said that he 'shares the opinions of the majority of the country, if not the entire country, that what's happening now in Palestine is nothing short of a disgrace'. 'When you start weaponising food and water and children are dying. I think it's the utmost finality of evil. Essentially, I think Israel will be on the wrong side of history indefinitely for what's going on over there. So I just want to make that point really clear,' he told The Journal. Advertisement He added that he has no shares that are linked to Israel. Did his company pay an Israeli hospital that trains Israel Defense Forces (IDF) soldiers $50,000 as part of a medical technology deal? The Ditch reported yesterday that his company paid an Israeli hospital that trains Israel Defense Forces (IDF) soldiers $50,000 as part of a medical technology deal. Sheridan told The Journal the 2020 transaction was connected with two doctors who happened to work at the hospital. They had developed a device that liquefied tablets for people that couldn't swallow or were incapacitated. The device would do very well in terms of treating people on the spot, explained Sheridan. 'It was a technology that we thought was very interesting, will be impactful on the world. Essentially, we took a gamble on it. The technology itself needed far more development than we initially thought… We don't have a continuing relationship,' he said. Was he fined in 2018 for making misleading statements about his company? Yes, he was fined $25,000. Nutriband was investigated by the Securities and Exchange Commission over company filings in the US. The (SEC) is is an independent federal agency of the US government that is responsible for regulating the securities markets and protecting investors. The SEC fine was related to a disclosure on a product that Sheridan says they were planning to launch with FDA approval. He told reporters they relied upon the advice from two attorneys and the dermatologist advising the company on that particular product. 'It happened to be a wrong opinion, and we basically took our fine and our cease and desist and said he will not do it again. We've had an excellent relationship with the SEC since. It was an honest mistake. You pay your dues and you move on,' he said. Did his mother object to social housing? After a story appeared in the Irish Examiner today, Sheridan confirmed that his mother did object to a housing project through her work. He said his mother 'broke down' when Sheridan asked her about it yesterday. 'It's something that is not in the personality of my mother by any means. My mother grew up in social housing. You know, she is one of my inspirations to tackle the housing crisis, and she's fully behind it. So I'm just really stressed about that. As a family, we find this as a core issue that needs to be tackled,' he said. What does he think about immigration and racist attacks? Asked about the recent attacks on the Indian community, Sheridan said 'it's certainly troubling but has become a 'little bit more prominent' now. 'I really stress that if that's something that you support or get behind, and I'm definitely not your candidate,' he said today. Describing immigration and migration in general as a 'tricky subject', Sheridan said these are 'not statistics at the end of the day. We're talking about people'. 'I think we have a migration problem both ways, right? We have an emigration problem because the youth are leaving in their droves, but we don't have an immigrant problem,' he said. Related Reads The millionaire millennial seeking the presidency: How did Gareth Sheridan get so rich? Catherine Connolly is using American-style grassroots fundraising for her presidential campaign Catherine Connolly, presidential hopeful, has given her first press conference — here's what she said The Journal / YouTube Sheridan said the government were unprepared and lacked foresight with the immigration system, which he said was set up in an inadequate way to deal with the inflow of people that want to move here. 'It should be no surprise to us that Ireland has become a destination where people want to live and want to raise a family and want to grow their life, and we should have seen that coming,' he said. 'But we also have to understand that immigration is healthy for the economy, right? It's a matter of making sure that we all get along,' he added. Is he against removing the Triple Lock? Sheridan said today that he is against changes to the Triple Lock. This is one of the key pieces of legislation that the next president may have to sign off on if government is successful in pushing it through. The triple lock system dictates that Irish troops in groups of more than 12 cannot be deployed abroad without approval from Cabinet, the Dáil and a resolution from the United Nations Security Council. The changes proposed by government include removing the UN Security Council element. 'I think we're Irish first and European second and they need to listen to the people a little bit more,' said Sheridan. 'I think there's an overwhelming objection of the idea that we would move forward with that. And I want to stress that we're militarily neutral, but we've never been morally neutral, and that's important as well,' he said. Would Sheridan like to see a united Ireland? Sheridan said it is something he would love to see in his lifetime, but he said it is a complex issue that cannot be rushed. He told the media that the idea of a united Ireland needs to be 'very seriously thought out', stating that 'the narrative that we need to rush to bring that through is a little bit unprepared'. Is housing going to be one of his key talking points? Yes, Sheridan said he is not going to bring his toolbox and start building houses, but he will champion the issue. My ideal home here is we claim to 'make Ireland home again'. He said there has been complete ignorance to Article 41.21 of the Constitution which enshrines the right to a peoples' domestic needs. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Extra.ie
a day ago
- Extra.ie
Irish activists help plan new flotilla to get aid into Gaza
Irish activists are playing a big role in organising a new international flotilla to try to get vital humanitarian aid into Gaza. Israel is continuing to block the access of aid trucks into Gaza while it starves and kills Palestinian civilians. The numbers of civilians killed by Israel, either by starvation or violence, continues to rise every day and this new flotilla will attempt to break the blockade in the coming weeks. People gather around the Freedom Flotilla ship 'Handala' ahead of the boat's departure for Gaza back in July. Pic: Giovanni Isolino/AFP via Getty Images The flotilla will depart from Spain on August 31, before stopping at Tunisia and other countries on September 4 as it sails towards Gaza. People from over 44 countries are planning to participate in the movement. The new Global Sumud Flotilla, organised by the Global Movement to Gaza (GMTG) campaign, aims to break Israel's blockade and raise attention to the starvation happening in Gaza. A protester holds up a poster reading 'Defend The Freedom Flotilla' during a protest in London earlier this year. Pic: Mark Kerrison/In Pictures via Getty Images However, it is likely that Israel will intercept the flotilla before it can deliver the necessary aid, just as they did for Greta Thunberg's 'Freedom Flotilla' earlier this summer. Greta will once again be a part of this flotilla. Greta Thunberg will once again be a part of this flotilla. Pic:Karen Moynihan, GMTG Irish coordinator, stated: 'The people of Ireland are steadfast in our support for the liberation of Palestine. 'The Global Sumud Flotilla sails with more boats than ever seen before to break the siege on Gaza. 'We are calling everyone across Ireland to join the movement and support the flotilla. Citizens of the world are united, and we will not stop until Palestine is free. No one is free until Palestine is free.' Greta Thunberg and her fellow activists were detained and deported by Israel when they attempted to provide aid to Palestinians in June. The humanitarian ship Handala, operated by the Freedom Flotilla humanitarian organisation, as it set sail for Gaza earlier this year. Pic: Gabriele Maricchiolo/NurPhoto via Getty Images The 'Freedom Flotilla', on the boat the Madleen, departed from Sicily but got intercepted in international waters. Israel proceeded to mock the activists, who were trying to save lives, on its social media accounts afterwards. This new flotilla comes as a joint statement from 24 countries and the EU denounce the 'famine unfolding before our eyes' in Gaza. They continued: 'We call on the government of Israel to provide authorisation for all international NGO (non-governmental organisations) aid shipments and to unblock essential humanitarian actors from operating. 'All crossings and routes must be used to allow a flood of aid into Gaza, including food, nutrition supplies, shelter, fuel, clean water, medicine and medical equipment.' The statement was signed by the foreign ministers of Australia, Belgium, Canada, Cyprus, Denmark, Estonia, Finland, France, Greece, Iceland, Ireland, Japan, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and Britain. The EU's foreign policy chief Kaja Kallas, and two other members of the European Commission also signed the statement. Some EU member countries, including Germany and Hungary, did not sign it. Recently, Israel killed the Al Jazeera news team, including prominent correspondent Anas al-Sharif, in a deliberate strike on their media tent. The attack was condemned by the United Nations, the EU and media rights groups. Anas was one of Al Jazeera's most recognisable faces working in Gaza, providing daily reports on the slaughter. The UN human rights agency called their deaths a 'grave breach of international humanitarian law'.
The Irish Sun
2 days ago
- The Irish Sun
President Michael D Higgins blasts ‘despicable' wave of attacks on Indian community in Ireland after festival cancelled
President Higgins also expressed his gratitude to the Indian community for their contribution to Irish life VILE ATTACKS President Michael D Higgins blasts 'despicable' wave of attacks on Indian community in Ireland after festival cancelled MICHAEL D Higgins has blasted the 'despicable' wave of attacks on members of the Indian community in Ireland. The President hit out in a stinging statement following the spate of racially-motivated assaults in recent weeks, which have prompted safety fears. Advertisement 3 Thousands gathered outside the Dail last month to protest against racism following the assault of an Indian national in the Tallaght area Credit: Getty Images - Getty 3 The Ireland India Council has called off the India Day festival at Farmleigh this Sunday, citing safety concerns Credit: � 2025 PA Media, All Rights Reserved On Monday, the Ireland India Council announced it will not go ahead with the India Day festival at Farmleigh in the Phoenix Park this Sunday because of safety concerns. President Higgins, 84, said he wished to express 'the deep sense of gratitude we all in Ireland owe to the Indian community here. 'We are all mindful of the immense contribution this community has made, and continues to make, to so many aspects of Irish life, in medicine, nursing, the caring professions, in cultural life, in business and enterprise, to cite just some.' Higgins continued: 'The recent despicable attacks on members of the Indian community stand in stark contradiction to the values that we as a people hold dear. Advertisement 'UNEQUIVOCALLY CONDEMNED' 'That any person in Ireland, particularly any young person, should be drawn into such behaviour through manipulation or provocation is to be unequivocally condemned. 'Whether such provocation stems from ignorance or from malice, it is essential to acknowledge the harm that it is causing. 'Such acts diminish all of us and obscure the immeasurable benefits the people of India have brought to the life of this country. 'Ireland has long been shaped by migration, both outward and inward.' Advertisement Higgins - whose second term in office comes to an end later this year - added: 'Those who left our shores carried our culture and values into faraway lands, often depending on the generosity of strangers.
