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Irish Property Market chat II - *read mod note post #1 before posting*

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  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    I don’t think current spending is value for money, I also think that people saying the Government should have built all these houses is pie in the sky crap.

    There are so very many reasons for the housing problem that saying the government should have invested billions (which we didn’t have) to build houses (which we neither had the workforce nor the oversight necessary to do) to get the planning (which would have taken years and you can be sure not everyone wants a council estate next door), and at the same time, depress private development due to unavailability of a skilled workforce and falling prices as a result of State building. I’m sure there would be many other important reasons why State building on the scale some here believe should have been done, simply wasn’t possible.



  • Registered Users Posts: 7,054 ✭✭✭timmyntc


    The lack of workforce argument has been debunked recently by construction industry reps themselves - it's a question of viability mostly and lack of finance that holds back construction.

    For state built social housing the viability risk is gone - they put it out to tender and contractors can build houses with a guaranteed buyer and guaranteed price. The state could even forward fund and take the financing costs out of the equation.

    Instead they agree leases that over 25 years term will more than cover the build costs of the property. The most egregious example of short term only thinking



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    It would be naive to think it is as simple as putting it out to tender, agree a price and hey presto, the houses are built. If the children’s hospital has shown us anything, it is that developers are far more skilled at playing the game than civil/public servants.

    The risks for the State, and any Government who undertook such a folly would be enormous, both financial and reputational.



  • Registered Users Posts: 7,054 ✭✭✭timmyntc


    The NCH is as much due to scope creep as it is due to BAM gaming the tender system.

    NCH spec from initial tender to current hospital is (literally) millions in the difference. Those failings lie with the department.

    Social housing is nowhere near as complex as a world class hospital



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    It is much more complex for different reasons, multiple locations throughout the country, multiple planning processes, objections and vested interests, multiple developers, contractors etc, multiple LAs overseeing builds on their patches, dealing with unions, pay agreements, strikes, employment rights on state projects etc. The CH is one site and has been a shitshow with the main contractor effectively holding the State to ransom whilst threatening to walk away.



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  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,500 CMod ✭✭✭✭Sierra Oscar


    The Sunday Business Post are reporting that the Housing Commission has warned the Government that it believes up to 80,000 new homes will be required every year between now and 2050 just to keep up with demand. Government targets are way off it would seem. Hard to see how the undersupply issue will be addressed even in the medium to long term at this stage.

    It does seem the Government targets have been very optimistic and haven't properly grasped the pressures associated with demographic change, especially much stronger inward migration than was initially forecast.



  • Registered Users Posts: 7,054 ✭✭✭timmyntc


    In fairness the 80k figure is based on the worst case with a massive rise in population coupled with very low household size (~2.1). It even says in the article the most likely case is close to 50k I think?

    It is a large volume of comparatively simple projects. The same designs can be used again and again, with the big advantage of experience throughout the entire process getting reused, which leads to greater efficiencies.

    Totally different to NCH. In every profession, every body of work, multiple instances of a simpler project is always more efficient than the single super project. Yes there would be big divergence in outcomes with some coming in under budget and some above, but it would always be much much better than the NCH.



  • Registered Users Posts: 3,027 ✭✭✭Blut2


    The state built large numbers of social housing for most of its existence. While in a corruption riddled, desperately poor state, for most of that. So its beyond ridiculous to handwave the idea away as something impossible to achieve.

    The workforce claim has been debunked multiple times in this very thread - we had as many construction workers in the state in 2023 as in 2005, but built a fraction of the housing. The difference is far more are building non-housing projects now, which is down to government policy/incentives (or lack thereof).

    Planning is still bad but its less bad than it was at any time in the past, its very incrementally getting better.

    If they state had engaged in a widescale training programs years ago - at any point in time after the housing crisis first began to be identified a decade ago in 2014 - it wouldn't have had any impact depressing private development. That problem is completely possible to mitigate for. In past decades there was no problem with both social and private developments happening at the same time.

    The "many other important reasons why State building on the scale some here believe should have been done" somehow didn't stop the state building tens of thousands of social housing units in other decades. So the lived evidence would very much suggest its far more likely that whats changed here is us having a FG controlled government for most of the last 13 years, that for the first time in the state's history focused on a neo-liberal laissez-faire approach to the housing market as a matter of core principal. Which has now resulted in the terrible housing market situation we find ourselves in.



  • Registered Users Posts: 3,502 ✭✭✭BlueSkyDreams


    Indeed.

    And the frustrating part is the govt doesnt appear to ramp up targets for social homes built, despite a rapidly growing population and therefore, a larger available workforce.

    We will soon be seeing 30k+ asylum seekers per year, on top of the organic population growth. Tap into the latent workforce!

    The govt wont go to building 20k social and affordable in 12 months, but lets see a progression plan with timelines.

    One of the issues is social housing targets. The councils respond to this metric by renting private homes, on top of the part 5 allocation, in order to hit their numbers.

    They should be made to BUILD a percentage of these homes, so they are forced into executing a medium to long term plan for social housing provision and allowing the private sector to grow naturally and in tandem.



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    I was listening to an economist talking about the building of social housing particularly in the earlier years of the State, he made the point that this coincided with the handing over of responsibility for running the schools and healthcare to the religious orders, allowing the state to focus time and resources to the problem of housing. And the decline in State housing in turn coincided with the State retaking responsibility for eduction and healthcare, and all that involved.

    There is no benefit in looking back on how things were 40 years ago, the world today is very different.

    If we have so many construction workers, why is it so damn hard to get any tradesperson at the moment, and why are contractors struggling to find labour?



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  • Registered Users Posts: 1,234 ✭✭✭herbalplants


    I don't think it is hard to get tradespeople, times have changed.

    Living the life



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    I suppose it depends on the area. I finished some construction work on a garage earlier in the year, what should have taken two months took nearly 5 due to shortage of labour. I know the contractors, they have done work for me many times over the last 20 years on various projects, all, electrical/plumbing/joinery/plasterers/roofers said the same thing, they were turning down jobs because they couldn’t get labour.



  • Registered Users Posts: 3,027 ✭✭✭Blut2


    The vast majority of funding for schools and healthcare in Ireland has always come from the state. I think thats honestly the most nonsensical justification I've heard yet for the state not building social housing the way it used to.

    The things the state needs to do to build social housing now are not very different from 40 years ago. Its still the same process. If we achieved it in the past, repeatedly, while a much poorer, more corrupt, more inefficient, state then all evidence and logic would suggest we can absolutely achieve it now.

    Its hard to get tradespeople because they're employed doing work other than on houses. Its not really a difficult concept, the figures on it are very clear. Have a look at the CSO figures for employment in construction, or even read the articles posted in recent pages here on the massive glut of office space coming to market at the moment due to overconstruction in that area.

    If you don't think the state should be building social housing at scale then what exactly is your proposed alternative? Continue spending literally billions of euros on leasing private sector homes for social housing as our government has been doing?



  • Registered Users Posts: 7,054 ✭✭✭timmyntc


    Commercial and hotels have seen huge investment in last 6 years, commercial is dying a death now though with big oversupply. This is where most of trades are coming from.

    Sparks are diversifying into solar panels as commercial work has dried up, but most will happily work on residential when it arises as the pipeline of solar installs isn't continuous



  • Registered Users Posts: 3,512 ✭✭✭Timing belt


    Retrofitting alone would eat up all that labour….lets not forget that majority of housing stock that would need to be retrofitted (if people could afford it) is massive verse the number of new properties.



  • Registered Users Posts: 2,747 ✭✭✭PommieBast


    Suspect that a significant portion of the housing stock should be knocked and rebuilt, let alone retrofitted. Ain't gonna happen given how had things have become though.



  • Registered Users Posts: 1,457 ✭✭✭SharkMX


    Love how people sitting at a keyboard think building 10s of thousands of houses is easy :)

    Sure all a man has to do is sit hop in a rocket if he wants to go to space.



  • Registered Users Posts: 18,566 ✭✭✭✭Bass Reeves


    While the state provided the majority of funding for schools, the religious orders provided a significant amount as well. They also provided the management to these schools and fundraised for extras into these schools. This saved tge state significant funds

    https://www.rte.ie/archives/2017/1018/913201-kenmare-housing-problems/

    This idea that the state was poorer then is a slight misconception. While budgets were smaller demands on the state were less. There was not 20-25%% odd of the population receiving payments of one form or another ( unemployment, disability, OAP carers etc etc) add in health costs and the budget has drastically changed in 50 years.

    Another factor the state could manage projects 50+ years ago. Even after that look at tge comparison between the major telecoms development of the 70/80's compared to the Rural Broadband project at present. Except tgat we are so financially well off there woukd be more questioning of the costs. Add the NCH to that. The state cannot no longer directly manage building projects.

    TBH most of these espousing mass house building by the state could not manage to build a hen house. They have no conception of hiw tge building sector operates

    Slava Ukrainii



  • Registered Users Posts: 2,221 ✭✭✭combat14


    interesting court ruling in our dutch EU neighbour - apparently the court has found that landlords there have over charged tenants for years with some rent increases deemed to conflict with european consumer protection laws - case now passed to supreme court with serious ramificafions for property values/portfolios if upheld - wonder will it have any impact here for similar property funds......

    Landlords may have to refund tenants billions of euros

    https://www.dutchnews.nl/2024/05/landlords-may-have-to-refund-tenants-billions-of-euros/



  • Registered Users Posts: 2,747 ✭✭✭PommieBast


    Least over there it was above inflation. Irish property funds are well ahead of the game by front-loading new-build prices, which is why you see so many central Dublin apartments with rent of €4-5k/month.



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  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    Consumer law in Ireland does not cover tenancies, not all EU directives related to consumer issues have been enacted here so I cant see how that would affect disputes here.

    What may be interesting is any appeal that might question the legality of State restrictions on private rental rates though.



  • Registered Users Posts: 3,027 ✭✭✭Blut2


    What exact percentage of funding did the religious orders provide for our schools and hospitals? "Sigificant funds" is a very dubious claim.

    The state was massively poorer in the 1920s→1980s compared to now, I don't think thats really up for debate. There was no yearly surplus of billions of euros like we have now. We ran budget deficits, and had massive unemployment and emmigration for the vast majority of the first 70 years of independence. We were the poorest country per capita in Western Europe for large parts of that. We were an economic basket case. Yet still built thousands of social housing units regularly.

    The idea that the state now cannot afford to build social housing, because religious orders are paying less towards our schools and hospitals, is just nowhere near factual. Especially given the fact we currently have a yearly surplus of money, a lack of money is empirically not the problem here.

    "The state cannot no longer directly manage building projects." - there is no inherent genetic problem with Irish people in the year 2024 that means our country can't manage building projects. We did it in the past, when corruption and inefficiency ran rife, so theres absoutely no logical reason why we can't do so now. The reason we don't is ideological - because FG have done their best to gut state spending on construction over the last 13 years.

    Just because our current government has proven utterly inable to directly manage building projects does not mean every Irish government ever will be.

    I'll also ask you the same question I asked Dav010, which rather tellingly seems to have prompted him to disappear. If you don't believe the state should be building large numbers of social housing then what exactly is your proposed alternative solution? Do you think the state should continue the FG policy of the last decade, and continue/increase its spending on HAP and leasing social housing instead, from the billions of euros its already spending? Do you think thats working well currently, and providing value for money to the Irish tax payer?



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    Don’t flatter yourself, you didn’t prompt me to “disappear”.

    If you want to ramp up property development, you offer incentives to the experts in large scale building, private developers, make finance easier to access, and overhaul the planning system.



  • Registered Users Posts: 3,027 ✭✭✭Blut2


    Funny how you didn't respond to the post for days, despite being online and posting in-between, but respond to being called out on your ducking the question within 9 minutes though eh?

    How does doing any of that take the circa 65,000 households currently on HAP, at a cost of over €1bn per year to tax payers, off of HAP? Or let the state stop spending billions of euros leasing thousands of private sector housing units for social housing in addition?

    We have tens of thousands of households unable to afford to rent in the private sector market, and unable to rent in it even if prices crashed by 50%. Which "offer incentives to the experts in large scale building, private developers, make finance easier to access, and overhaul the planning system" is highly unlikely to achieve I'm sure you'll readily admit.

    What exactly do you propose is done with these people if not building of social housing?



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010


    Most of what you post doesn’t make sense, it’s just raging against the system and saying the same thing over and over again, I just didn’t want you to have an inflated opinion of what affect your posts have on me, so I wanted to let you know that you are flattering yourself, nothing more.

    I thought it would be obvious that ramping up development would increase supply. Instead of the State, with its lumbering inefficiencies and procrastination being relied on to build homes, incentivise private developers who have the expertise to build, is the best way.

    Post edited by Dav010 on


  • Registered Users Posts: 1,457 ✭✭✭SharkMX


    Your posts dont make any sense tbh. They are not based in reality at all. Ive stopped reading them myself, never mind responding to them. And now you have gone even further off the reservation and seem to be stalking people who are posting elsewhere but not responding to your precious posts.



  • Registered Users Posts: 14,524 ✭✭✭✭Dav010




  • Registered Users Posts: 626 ✭✭✭lordleitrim




  • Registered Users Posts: 1,234 ✭✭✭herbalplants


    Living the life



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  • Registered Users Posts: 3,027 ✭✭✭Blut2


    My posts have a rather simple argument - the state needs to give up the largely non-interventionist supply side policies pursued in the housing market of the last 13 years, and instead return to building large scale social housing as it did for most of our history. It should be a simple enough concept to grasp.

    You're the one posting that its absolutely not possible to do this, but failing to give any logical justification as to why given we've achieved it many times in the past, or any alternative solution to explain what we should do instead.

    Your citing factors like a lack of construction workers when the CSO statistics on that have been posted multiple times in this thread, and they disprove you completely, would heavily suggest you're arguing out of blind ideology rather than factual knowledge.

    Ramping up private sector development won't remove the 65,000 households currently on HAP, costing tax payers billions, and removing large numbers of houses from the private sector market, from reality. Thats the real world issue that you're apparently unable to provide a solution for.

    My posts are purely evidential based on 1) what our state achieved for many decades (large scale building of social housing) and 2) the very obvious failure of the current housing market, something heavily influenced by the last 13 years of the state not building social housing. They're both very much based in reality.

    I've yet to see a single poster who disagrees with the idea of the building of large scale social housing so vehemently provide an actual, real world alternative. Because what we're doing currently as a country very obviously isn't working.

    I simply suggested that I find it interesting that someone whos highly active on boards.ie, who online enough to post literally thousands of times a year, suddenly disappears without trace when asked a factual question. But reappears within 9 minutes when called out on his disappearance (to still not answer the question). Its a rather interesting debate style, no?



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