Social Housing is key to saving the Irish Construction Industry

The only way to responsibly stimulate the housing market is through increased production in the social housing sector. This is one of the key recommendations being made by Respond! Housing Association in their Pre-Budget Submission, released today, September 29th 2008.

Increased production of social housing will not only help curtail rising unemployment in the construction sector but it will also decrease the number of people availing of social welfare assistance. In addition, additional tax revenues for the Government will be generated. Respond, the largest housing charity in Ireland, maintains that during these uncertain economic times, the need for social housing is greater than ever before. The time has come for this Government to deliver on housing commitments made in Towards 2016, Delivering Homes, Sustaining Communities and The National Development Plan (2007 – 2013).

According to John Hannigan, Respond! Company Treasurer:
“With growing uncertainty in the housing and construction sectors, now is the time for the Government to act. With Local Authority waiting lists exceeding 43,000 families, and growing, the time has come for this Government to deliver on the 44,000 social and affordable homes promised by 2009.”

In 2007, 6,671 social homes were completed at a cost of €1.2 billion. Respond! recommends that 11,000 homes are provided in 2009, at a total cost of €1.9 billion. This increase in capital expenditure is vital as the number of homes being repossessed reaches alarming proportions. So far this year, banks have repossessed homes at a rate of one per day, with reports suggesting this rate will increase.

“There are many options available to this Government to increase the supply of social housing more cost effectively” added Mr Hannigan. “These include discounted land purchased through Local Authorities; an improvement in the approval procedure for projects and site discounts and the provision of 100% mortgages through the Housing Finance Agency. A time of economic downturn is not the correct period to reduce supports for the poor and vulnerable in our communities. We have sufficient Exchequer resources to fund all of the proposals we have outlined in our pre-budget submission. It is time this Government finally did more for those in our society who were devoured by the Celtic Tiger” concluded Mr Hannigan.

Respond! is Ireland’s largest provider of social housing. The organisation has provided more than 4000 units of accommodation nationwide, with a further 1000 units under construction. The organisation advocates for integrated, social housing as housing of first choice rather than last resort.