Verona Murphy (Wexford, Independent) | Oireachtas source

A poll published the other day by Ireland Thinks in association with the Sunday Independentasked people which of the following issues should be the most important priorities to deal with. There was a long list of answers, but leading the way by far as the most popular two responses were the cost of living and housing. Instead of really getting to grips with them, the Government is wasting energy pursuing a climate change agenda at a rate of knots, with little regard for the costs, to appease a party that is now languishing at 3% in the opinion polls. There is no significant demand for the Government’s climate policies at this emergency pace, but there is significant demand for the housing issue to be sorted out, although it seems only at a snail’s pace.

To be fair, not all the problems associated with housing can be blamed on the Government but the Government must ensure that it is controlling the controllables. We in this House are legislators. We make rules and regulations which govern people’s behaviour in Ireland, so I do not expect the Government to be able to solve problems with global supply chains, for example, but I do expect the Government to ensure that the conditions are suitable in Ireland to allow a thriving building sector and stimulate the construction of housing. All of the rules and regulations governing the sector are choices made by Governments. The consequences of these choices have been stark for people looking to get a house of their own. Over the last ten years, successive Governments have consistently placed barriers in the way of houses being built and these barriers have all contributed to the current problematic housing situation. Barriers have been placed in the way of builders who want to build the houses, and in the way of people who want to buy the houses.

I am getting fed up pointing out that the problem of housing being unaffordable will not be improved unless something is done to enable the average builder to build a house with less State-imposed cost barriers in the way. These State-imposed cost barriers include State bodies like An Bord Pleanála and the Office of the Planning Regulator advising on minimum density being imputed into county development plans that do not exist in law, more often than not resulting in judicial review being taken when minimum densities are stipulated as part of a grant of planning. Minimum densities are often the reason developments do not go ahead, with unnecessarily onerous and costly conditions to be met before permission is given for developments and also the dezoning of lands serving to reduce the number of houses being built.

The social contract is broken for people in their 20s and 30s and now often for many in their 40s too. Those working as gardaí, nurses, teachers or any of those jobs traditionally regarded as good, steady Government jobs cannot afford to buy a home. Over the last ten to 15 years, Government Departments have also made it more difficult for certain employees to be considered permanent, again harming their chances of qualifying for a mortgage. I know of a couple in their mid to late 20s in County Wexford who have a combined gross income of approximately €85,000 per year and have combined savings of almost three times the required deposit, yet cannot qualify for a mortgage due to the nature of their employment contracts. Both of these people have displayed an ability to manage money, are debt-free, work hard, are well-educated and, to all intents and purposes, are a safe bet from a mortgage point of view. However, Government-imposed rules mean those two people cannot get on the housing ladder. Living with parents is the best possible scenario for thousands of people in situations like this and, for many, it means extortionate rents or homelessness. We need to examine where the social contract fell apart and start repairing it.

Forcing a building contractor to build a certain amount of affordable homes in a development will not solve those problems. A first-time buyer has enough on his or her plate without the local county council competing with him or her to buy a house, thus driving up the price in the process. If the Government is really committed to ensuring affordable houses are built, then it is time it looked at its tax take on new homes. The Government could take less than the current 13% VAT rate. It could follow in the steps of our neighbours in Britain and the North – if it is serious about providing affordable homes, that is - and reduce the tax take to zero. There is no reason it cannot do so. Affordability is what a potential buyer can afford to pay for a house. Given the constraints imposed by the Central Bank’s mortgage lending rules, reducing vat to zero is the only measure that will put a new home in reach of the couple in Wexford earning €85,000.

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