Surveyors’ chief urges Government to address high construction costs
The shortage of housing supply in cities like Galway – where rents are continuing to be driven upwards – is affecting Ireland’s international competitiveness, the Society of Chartered Surveyors Ireland has warned.
Newly-elected SCSI President, Andrew Nugent, said high construction costs need to be urgently addressed.
”The society’s main focus must be on helping to resolve the housing supply issues which exist in several urban areas.
”Housing shortages in several cities are forcing many people to buy or rent in commuter belts and have started to affect Ireland’s international competitiveness as rents continue to increase.
“We need a more stable rental market that provides certainty for both renters and landlords. By facilitating an increase in supply through a long-term strategy, we will be in a better position to meet our social housing requirements and also the needs of the increasingly mobile workforce, many of whom are employed by international companies located in Ireland,” said Mr Nugent.
He said one of the key supply issues which has to be addressed is high construction costs.
“Taxes and levies make up approximately 20% of the cost of a house in Ireland and are acting as a serious brake on development.
“The message of long-term sustainability is also applicable to the construction sector, the commercial property sector and the land sector. The SCSI will continue to engage with Government and other key stakeholders and to formulate policies based on evidence-based research,” he said.
Mr Nugent said the SCSI needs to attract more young people into surveying to meet industry requirements, but must also explore ways of attracting mature students into the profession to address graduate shortages.
He pointed out that the ‘two speed’ nature of the recovery meant its benefits were not being felt equally by members everywhere.
“The experience of our members mirrors the macroeconomic problems facing the country. While most firms in urban areas are starting to do better, we know our rural members are not seeing the benefits of the economic uplift.
“This is a critical issue for the SCSI and the industry but also has much wider significance for the country as a whole,” said Mr Nugent.