The biggest threat to the State could be from a loss of public confidence in the ability to address the challenges we face, especially how we can house the people in a secure, affordable and community enhancing way.
I think most political parties see that as their priority, even if they differ on how it should be achieved.
In the last five years the public housing budget doubled and a range of supports and interventions were introduced, but we are still not on track to delivering the Government’s target of 300,000 new homes by 2030. Not to mention the housing deficit we have as a result of a lost construction decade following the financial crash.
That supply gap has to be closed if Ireland’s 20- and 30-somethings are not to be 40- or 50-something before they get to set up their own home. It has to be done if we are to bring the homeless numbers down and have the right housing in place for people with disabilities. It has to happen for the economy to work in a secure, fair and competitive way.
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To close the gap, the Government should turn to the recommendations presented in a recent report by the Vacant to Vibrant Building Alliance. It showed how 120,000 new homes could be delivered by converting derelict and vacant premises and by focusing on living over the shop and other converted use solutions.
[ Tax breaks and expanded grants needed to accelerate action on urban vacancies - building coalition ]
The advantage of such an approach is that it provides new homes where we need them most: in cities, towns and village centres. By building there, we save the €115,000 it costs us all to provide public infrastructure for each new house built on greenfield sites. It helps reduce urban sprawl and traffic congestion and is fully in line with the National Planning Framework and the Climate and Rural Development Plans.
The strategy would save historic town centres from falling into dilapidation and disrepair and would bring essential workers back into city centres, so they can afford to live close to where jobs are. It would be a boost for local shops, pubs, churches and clubs and could be delivered quicker and cheaper than any of the new build alternatives.
The Government has introduced the Living Cities Initiative, Croí Cónaithe grants and vacant site levies, but it needs to do more. While there has been progress, we are not seeing the level of delivery required because of the costs and complexities involved.
The first of the alliance’s four main recommendations calls for the establishment of multi-disciplinary teams in every county council, providing advice, co-ordination and support for people looking to renovate buildings. We introduced something very similar in the active travel offices that were established nationwide in recent years, which will give an idea of the costs and timelines that should be provided for in next year’s budget.
Second, while the vacant property refurbishment grant scheme has been improved, they believe it should also be open to small businesses as a way of really pushing over-the-shop solutions.
Third, they argue we should provide tax relief on future rents and sale proceeds from converted buildings. This will be controversial politically, but the simple reality is that the financial maths in many projects still does not work and we have to change that dynamic. We should make sure the relief is only available on a temporary basis, so we can scale up solutions, which will bring down costs and thus remove the need for a long term intervention.
Fourth, they call for changes to the building regulations, to better facilitate conversion projects.
I might add a fifth suggestion: that we adopt a new UK approach, where office conversions to accommodation don’t necessarily require a new planning permission.
The Alliance’s proposals are in line with the draft European Commission Affordable Housing plan. They also make economic sense because the increased private investment will improve the public realm, while reducing the public bill for water, transport, communications and energy infrastructure.
Despite that reality, I imagine the Department of Finance will die in the ditch opposing the suggested tax break and the Department of Public Expenditure will be loath to approve a higher headcount in local government, which are the two main planks of the Alliance strategy.
Both issues can be resolved by political direction in the budget, which gives the Government plenty of time to get these essential further housing initiatives in order.
As it happens, just before that budget the European leaders are expected here for a summit on affordable housing. It should be one of the highlights of the European presidency.
What better time to demonstrate that we are doing everything we can to address this housing crisis and to show that the political centre does not just hold here, but it can also build things and in that way retain the trust of the people.
