Sir, – A review of the costs associated with constructing a three-bedroom semi-detached home offers intriguing insight (“Dublin’s Three-Bed Home Building Costs: Crunching the Numbers”, Business, October 21). The principal expenditure, surprisingly, is land, with each plot priced at about €89,000.
The study proceeds to individually list site development and siteworks as further expenses. An acre of agricultural land, which typically accommodates nearly 20 sites, is valued at approximately €15,000. Therefore, it’s abundantly clear that the existing land zoning regulations constitute a significant roadblock to attainable housing, fostering price inflating speculation by private citizens, ultimately undermining the common good.
A simple plot of land should only set us back by around €2,000 to €3,000. One hopes the forthcoming Government addresses this discrepancy since the incumbent Government has been unsuccessful in tackling this price inflating speculation evident in the present Planning Bill. Sincerely, DAVID DORAN, Bagenalstown, Co Carlow.
Sir, – Paying heed to the initial shots of the forthcoming election, it becomes noticeable that all political battles focus on the narrative of who can construct the highest number of houses in the shortest time and at the most reasonable expense. In contrast, after reading Eoin Burke-Kennedy’s article titled “Dublin Two-bed Apartments Now Nearly Cost €600,000 to Build” (Business, October 21), the fact that the housing crisis solution is beyond reach within existing policy parameters and cost structures is glaringly apparent to everyone, barring the contestants of the upcoming election.
Upon stepping away from the crisis, it dawns that the solution lies not with the government-to-be, but rather with local bodies. The focus should not be on achieving future construction targets but rather reusing existing housing permits and mainly developing a broader view of Ireland that favours socio-economic sense, as opposed to chasing notional economic growth numbers.
At the given price point, considering the buying cost, mortgage and sustention expenses, apart from a single-digit inflation, only five outcomes can be anticipated. Firstly, mortgages could only be accessible to couples with double high income. Secondly, uninterrupted repayments would require a life free of a recession for 35 to 45 years, but repossessions will always pose a continuous hazard. Thirdly, there could be a potentially high risk of destabilising the economy due to financial institutions having limited clients with an alarming level of debt from negative equity. Fourthly, public finances would constantly be under stress due to the economic and emotional burden faced by a large number of mortgage defaulters. Lastly and most crucially, credit for the high costs of building could be accorded to one overriding political factor – the desolation of our towns and cities, an expense completely neglected by all political contenders during the election.
Sadly, the unfortunate scenario is not isolated to O’Connell Street, it’s wide-spread across all Irish villages, towns, and cities. Gone are the times when social stability was demonstrated by multiple generations of a family associated with a single building, and tight-knit communities heavily invested in their streets and neighbourhood.
The prospect of future generations being condemned to isolated apartment living – serving only for the profit of faceless financial intermediaries – should be excluded from any campaign pledge.
A simple remedy lies in evaluating the historic planning permission system, not to address existing disputes or forthcoming procedures but essentially to set a foundation for all planning permissions issued. Planning permissions procured for homes and family businesses were intended for that specific purpose, to run a family business and have a family living above the shop. Such permissions didn’t permit for use as storage or vacant spaces.
Impose a penal tax on all buildings which have diverged from their original ‘dwelling permissions’ to storage or vacancy, and just like car and private health insurance, obligate insurance providers to offer policies on buildings which provided families with insurance whilst living above a business premises.
Potential solutions are dependent on villages and small towns regaining their cultural identity and community based around family life.
The imminent government might need to strategise more and construct less, as noted by Ciaran Walsh from Gown, Co Cavan. Interestingly, Sheila Deegan from Dublin points out the intense demands for housing in Dublin as well as in other large urban centres. Previously, when circumstances weren’t as dire, we put efforts into decentralising public and semi-public services and moving them to the countryside. Given the present situation, it’s worth pondering if we should invest more in such initiatives. The Public Service Transformation 2030 Strategy has indeed enhanced our public services as per Deegan’s belief. However, she highlights its failure in handling accommodation issues for public service employees based in Dublin. An intriguing fact she emphasises is how affordable properties are in rural towns in comparison to metropolitan cities.