According to Cairn Homes’ Chief Executive, Michael Stanley, the state possesses a sufficient number of construction workers to build 50,000 residential properties annually, challenging the National Competitiveness and Productivity Council (NCPC)’s claims of a labour shortage in the sector. During Cairn Homes’ Annual General Meeting in Dublin, Stanley argued that there is a surplus of workers in residential construction, regardless of popular perception.
He attributed this to a significant workforce shift from office and hotel projects to residential ones following the COVID-19 pandemic and a recent increase in borrowing costs. As Stanley stated, labour is not a significant restriction to reaching an annual rate of 50,000 housing units, despite government plans to uplift their housing goals to a minimum of 50,000 new homes annually later in the year.
Following a report by NCPC suggesting the need for additional construction labour to meet increased housing targets, Stanley shared his views. He acknowledged that the ageing labour force in construction could pose future challenges. He illustrated how, in Dublin, eight square metres of office space was developed for every square metre of residential space over the past seven to eight years.
He noted that a substantial shift in focus had been made back towards residential development, citing the shortage of serviceable land for development as the main obstacle to housing production. In a trading update issued on the same day, Cairn Homes noted an “exceptionally high” demand for its new homes across all tenure types and confirmed the construction of 2,200 housing units for the year, a 30% increase from the previous year. It highlighted favourable mortgage terms, state assistance to buyers, and the limited supply of reasonably priced starter homes as factors bolstering its business.
Cairn has confirmed it has reached a business agreement with a prominent university to provide 500 student accommodations in a large-scale development close to the campus, though it did not reveal the name of the university. Mr Stanley chose not to discuss the possibility of first-time buyer support schemes being dismantled by a Sinn Féin-dominated government, which is one of the party’s declared objectives. He instead commented on the company’s output capability, stating it wouldn’t be possible to increase production by 30% this year without the support of government policies.
Last year, the total salary of the Chief of Cairn Homes saw an increase of €800,000. In the firm’s updated trade report, they stated their long-term sales pipeline continues to expand along with the rise of large-scale apartment projects. The company’s existing completed and future order book is made up of more than 2,750 new homes, carrying a net sales worth of over €1.05 billion. Out of these units, 1,000 are anticipated to be delivered beyond 2025.