Better off and institutional investors dominating market

Commenting on the CSO Residential Property Price Index for January, IPAV, the Institute of Professional Auctioneers and Valuers, said there is no surprise, the residential property market continues to be dominated by the better off who have the ability to buy and institutional investors, with those on average incomes who should be the mainstay of the market, either excluded altogether or pushed out to the suburbs which have expanded greatly.

“There is no way we can build the 340,000 homes the Central Bank estimates we need up to 2030 without something drastically different happening.

“It is to be welcomed that following the recent general election we are no longer alone in proposing such solutions. One of our concerns is that market expertise has been given lip service by decision makers and influencers. There is a reluctance to undertake anything bold or imaginative.

“A real impediment to achieving such solutions is a complete lack of co-ordination of policy across Government and Government Departments, the latter which continue to operate as independent republics. The generalist nature of the Irish civil service means there is a considerable lack of property expertise within, and a deep reluctance to, if not suspicion of, taking on board ‘outside’ expertise,” Mr. Pat Davitt, IPAV CEO, remarked.

IPAV has proposed the creation of a Property Council to pool the divergent elements and garner its collective expertise to help find new and better solutions, under a Government led structure. Mr. Davitt said IPAV has contacted other industry players in this regard.

“Such a structure would help guard against solo runs or knee jerk reactions that while addressing some consequences of the housing crisis fail to address the medium and long-term sustainability issues of the Irish property market,” he said.

He said the recent general election result with the housing crisis being central could mean that there may now be an opening for such an initiative to be accepted.

 

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