Mr. Martin Whelan:

In our opening statement, we identified three closely interrelated issues: high costs impacting viability and affordability; capacity as it relates both to the subject Mr. Coleman has just addressed and the structure of the development and construction sector here in Ireland; and capital. We have seen a near collapse in inward investment in the Irish housing system over the past year or year and a half. It is pronounced in two areas. The first in inward investment in the form of development, particularly equity finance for new development. That is a major challenge. It is a particular challenge given that there is a higher equity requirement for apartment development. The shortage of such financing is an issue but the cost of that finance is even more of an issue. It is affecting viability, margins and the ability of development platforms to build up scale, to rebuild their balance sheets and to create the scale that is needed to work on multiple projects simultaneously as opposed to working project by project. We also see it on the other side of the equation, particularly in the form of investment in the build-to-rent sector. That sector had been providing approximately 2,000 new rental apartments every year. That has significantly reduced. It has dried up. That obviously has significant implications for the provision of homes for people who need them.