People in Ireland need to stop calling property investment firms “vulture funds” and development and building rules need to stop changing if the housing crisis is to be solved, property and banking sector representatives have said.
Marie Hunt, executive director of research at real estate firm CBRE, told an Irish Council for Social Housing conference that the “fundamental problem” in the Irish housing market “is a lack of supply”.
She said bureaucracy and regularly changing public policy were also issues, noting the political discussion this week about potentially changing the link between rent and inflation because prices were rising.
Ms Hunt said investors were not going to come into a market where the rules kept changing halfway through the game.
She said that calling investors “vulture funds” was unhelpful and that name calling “in the media” should stop.
“We need that capital and we need that investment.”
She said investors who bought a nursing home or an office block were welcomed but that those who bought housing received very negative publicity “and they don’t need that”.
Take interest elsewhere
Pat O’Sullivan, head of real estate research at AIB, said policy changes were problematic and that the term “vulture fund” was offensive to investors, who could take their interest elsewhere.
He said Ireland isn’t the only economy that requires funding and “we have got to be very careful about the amount of changes we make to policy, how we describe the investment”.
Ms Hunt said that from a developer’s perspective, many housing schemes were not viable due to high construction and “input” costs and “because we have raised the bar so high in terms of the planning regime and design requirements”.
She instanced the judicial review process, which has been used to bring challenges to fast-track strategic planning developments, as another problem. Ms Hunt said “anecdotally” developers were hiring senior counsel and barristers ahead of planners and architects, such was the level of challenges.
The conference continues on Thursday.
