The lines of conflict over housing in the general election are becoming progressively stark, as evidenced by the early disputes following the unveiling of Sinn Féin’s comprehensive housing proposal this past Monday. This presents a significant challenge to credibility regarding this persistent and problematic issue.
Sinn Féin’s proposal is elaborate and extends over 107 pages, meaning the party hopes to assert its message across the country. They plan to do so by distributing a condensed version of this proposal to every household in the country in the coming weeks. The proposal aims to reset the housing system, envisaging that 30 per cent of houses would be “public non-market housing”. This is in opposition to the current situation where the party argues 84 per cent is “profit-driven private housing”.
The implementation of this proposal would necessitate the construction of, on average, 60,000 new homes annually for the next five years, the party claims. The government concedes that its existing annual target of 33,000 homes is insufficient and suggests that the forthcoming revised target will be around 50,000 homes per year.
Interestingly, the Sinn Féin plan omits several of the more upfront “retail” aspects that the government strategy includes. Schemes such as Help to Buy and the shared equity First Home Scheme, which were initiated by Darragh O’Brien in 2020 and are popular amongst the government, are not mentioned. These schemes are seen by the government as effective ways to transform renters into homeowners.
Sinn Féin’s challenge will be to persuade voters to abandon the Government’s initiatives on housing. The party has presented an ambitious €39bn housing plan aiming to deliver 300,000 homes over the next half-decade. The party’s package includes affordable homes starting from €250,000, rent freezes and the construction of 300,000 new units within five years.
The Taoiseach has questioned whether the measures to curb mass purchasing of houses have been wholly successful.
Sinn Fein’s potential solution to housing market inflation is to end or significantly modify certain schemes while adjusting the eligibility prerequisites for others. This strategy aims at correcting the market inflation observed under the current Government; as declared by Pearse Doherty, another two years under this policy could make homes €50,000 pricier, indeed a daunting outlook for prospective homeowners.
Sinn Féin proposes multiple amendments to the planning process, including zoning measures, provision of aid for small construction firms, and the wider use of compulsory purchase orders. These amendments, Sinn Féin argues, would make demand-driving schemes redundant. Although this strategy appears well-considered, the implementation of such reforms tends to be time-consuming. Moreover, the current Government might likely insist that these actions are already being implemented.
This political party is on a mission to reassure voters that discontinuation of these schemes will not make homes even more unaffordable in the short-term, assuming they can make a sound argument for a better-operating housing market five years hence. Recent evidence suggests the party is adjusting its plans to offer more immediate benefits – the housing proposal includes a stamp duty exemption for first-time buyers of homes priced up to €450,000, a feature unheard of in their earlier policy discussions during summer and supposedly concluded in recent times. Sinn Féin claims this would result in more affordable housing from the first year itself, citing the case of 22,000 homes trapped in the bureaucratic procedures for social housing delivery. Additionally, a three-year rent freeze from day one is being proposed.
One potential critique levied by the incumbent Government pertains to the innovativeness of some Sinn Féin’s propositions, such as the affordable homes scheme that requires perpetual State ownership of the land beneath a property along with some constraints on future sales or rentals of an owned property.
/”Sinn Féin claims that they can generate low-cost homes within a range of €250,000-€300,000. This strategy, however, has encountered opposition from the coalition who believes that the banks won’t approve mortgages for it. A response from banks is still pending while Sinn Féin maintains optimism that this won’t pose an issue. Additionally, the coalition posits, rather exaggeratedly, that it will make the concept of traditional home ownership invalid. The deciding factor will be the voters’ judgement: Whether Sinn Féin’s proposal seems plausible enough to persuade voters to dismiss Government strategies that, although possibly flawed, provide an option to own a home?
Sinn Féin also asserts that their party intends to reduce spending on long-term funds intended for adapting to population changes, climate changes, and infrastructure deficiencies in order to invest more in housing. Doherty, the party’s finance spokesperson, passionately emphasised this promise. Although it offers an easily comprehensible political proposition given the current era of sound-bite politics, it will inevitably cause the Government to question Sinn Féin’s reliability in making significant economic decisions.
The Government insists they’ve made progress on housing issues, despite persistent issues with affordability, a shortage of supply, and homelessness. On the other hand, Sinn Féin advocates for radical changes, even if their proposed solutions have yet to be tested, especially in light of the Government’s mediocre track record. The reaction from undecided voters to this showdown will bear considerable influence in the forthcoming months.
There’s a brewing battle within the coalition as budget discussions approach”./