Housing Critical for Cork

Dear Chamber Member, 

 

Access to housing remains a Chamber member priority and as such we have been lobbying for fiscal and policy interventions to address the issue on your behalf. The publication of the ‘Housing for All’ Strategy by Government last week was an important first step in recognition of the seriousness of the housing challenges that exist. As Ireland’s second city and as Europe's second largest English speaking city region, Cork has the potential to develop as a vibrant urban centre of both national and European significance, however the delivery of affordable, quality housing is critical to enabling our future economic growth and to improve quality of life for all.

 

The housing crisis impacts across all aspects of society and on the business community as suitable and affordable accommodation is a prerequisite in any growing and successful economy. To meet the needs of employers seeking to attract talent in a competitive marketplace, quality of life, local housing infrastructure and environment are key determinants for both investors and a mobile workforce. While the intent of the strategy is to be commended, there are serious questions regarding the joined-up thinking across Government necessary to deliver on the strategy as well as the cost, resourcing and capacity issues that exist as barriers to private sector delivery.

 

Some of the measures included in the Housing for All Strategy such as a tax on vacant land and properties, changes to preservation orders, planning exemptions for ‘above shop’ conversions and increased funding to the Land Development Agency, and additional investment of €1.3bn in the Urban Regeneration and Development Fund are positive steps towards stimulating the delivery of housing across the region, but the strategy does not go far enough in addressing the viability and delivery issues that exist. If the Land Development Agency is to reach Government’s ambition and to operate as the state developer for housing, serious consideration needs to be given to its structure and resourcing.

The sustainable delivery of new apartment developments is vital to meet both short-term and long-term housing demand and deliver objectives under the National Planning Framework for the compact spatial development and densification of Ireland’s cities. The establishment of a Croí Cónaithe (Cities) Fund contained within the Housing for All report will go some of the way to addressing the apartment viability challenge, but as the recent CIF/Cork Chamber report produced by KPMG highlights much more needs to be done to address this urgent issue which has not been addressed by this strategy. Over 50% of the 300,000 homes promised for delivery by 2030 are to come from private sector developers, and based on KPMG research findings this, based on current costs, is unviable.
 
Housing For All is a start but it won’t achieve the desired effect without directly addressing challenges such as brownfield apartment viability. In light of the publication of this strategy, Cork Chamber has called on Government for wider departmental engagement to ensure all economic impacts are considered on the issue and direct interventions that will allow the scale of delivery that Housing For All promises.

 

We will continue to work with our political representatives, and local and national government on your behalf to ensure delivery of housing that will help to unlock Cork's potential economic growth. Thank you for your continued engagement and contributions which help to shape our agenda and advocacy work. Please be in touch to share your views on this or other issues that affect your business and industry.

 

 

Warm regards, 

 

Paula Cogan

President