Developers Urge Government to Remove Barriers to Housing Solutions

To address Ireland’s ongoing housing crisis, developer Michael O’Flynn advocates for a significant shift in government policy that would allow private builders to operate more freely. His comments follow the publication of the Future Forty report by the Department of Finance, which projects that housing demand will peak in the early 2030s and gradually decline thereafter. Despite this expectation, the report indicates that a backlog of housing demand may persist until 2040, highlighting a pressing need for action.

The report reveals that even if the government meets its housing completion targets outlined in the recent plan, Delivering Homes, Building Communities, the crisis will not be resolved for another 15 years. O’Flynn emphasizes that the current pace of construction is insufficient to address both new demand and the significant historical deficit of homes created during the economic downturn of the late 2000s and early 2010s.

“Plans and policies alone will not resolve the housing crisis,” O’Flynn asserts. He argues that it is essential for the government to remove the numerous barriers that hinder the delivery of various types of housing, including social, affordable, and private homes. This partnership between the public and private sectors is vital to ensuring that taxpayer money is used effectively while increasing housing availability.

O’Flynn identifies three main issues impacting housing delivery. Firstly, there is a lack of viable land zoned for development, particularly in urban areas. He notes that local authorities often claim sufficient land exists, yet in reality, the available land is frequently not suitable for rapid housing development. The government has tasked local authorities with revising development plans to increase housing production, and O’Flynn hopes to see positive responses from local councils.

Secondly, O’Flynn points to delays caused by judicial reviews and planning objections, which can stall projects for extended periods. He acknowledges the government’s recognition of this problem and highlights the need for a streamlined process. “If an objection is dismissed, building should commence,” he states, emphasizing the importance of swift action once objections are resolved.

The third issue concerns the urgent need for supporting infrastructure, such as utilities and educational facilities, to accompany new housing developments. O’Flynn welcomes the government’s commitment of €3.5 billion for power infrastructure and a record €12.2 billion investment in the water sector, asserting that these funds must translate into tangible improvements.

O’Flynn argues that while the state plays a crucial role in facilitating development, it should not compete directly with the private sector. He warns against the idea of establishing a state construction company, highlighting the potential financial burden this could place on taxpayers. Instead, he advocates for the government to act as an enabler, fostering a collaborative environment that encourages private investment.

Reflecting on his experience as part of the government-appointed Housing Commission, O’Flynn notes that while progress has been made, many recommendations from the commission have yet to be implemented. He acknowledges recent changes in apartment design requirements and VAT treatment, which have improved the viability of apartment construction but believes more needs to be done.

O’Flynn is optimistic about modern methods of construction (MMC), which utilize off-site prefabrication techniques to enhance efficiency and quality. He is involved in a new MMC facility in Coachford, County Cork, aimed at supplying the housing sector with innovative building solutions.

As Ireland faces a generation struggling to find affordable housing, O’Flynn urges stakeholders to act decisively. “We owe it to young people stuck in family homes or the rented sector, wanting to own their own space,” he asserts. By addressing the structural issues in housing delivery and fostering cooperation between the public and private sectors, he believes it is possible to alleviate the housing crisis and create communities that people want to live in.