The real estate market is not out of control, according to the Minister of Housing

The property market is not out of control, and its problems are not unique to Ireland, said Housing Minister Darragh O’Brien.

Two reports on Monday showed a 9% rise in asking prices and sharp rises outside the capital, putting further pressure on a government struggling with housing shortages.

“I don’t accept that it’s out of control,” Mr O’Brien said shortly after the data was released by Daft.ie and MyHome.ie.

“It’s not unique to Ireland either, but it’s something we need to get a grip on and the way we get it under control actually increases the supply.”

Both reports showed that while valuations outside of Dublin are accelerating at a faster rate, the overall level of inflation has fallen from the 13% reported at the end of June.

“We just can’t escape the fact that we’ve had two very serious construction stoppages in this country where we’ve lost about 8%, as well as human resources in the construction industry, the people who are actually building these homes. said Mr. O’Brien.

He pointed to similar problems evident in Europe and the United States, and said ongoing efforts to catch up with a decade of undersupply here were not only driving up prices in Dublin and regional towns, but elsewhere in the country.

Average prices rose 4.9% in Dublin to around €400,000 in the 12 months to September, while outside the main cities growth averaged 12.9%. Counties Mayo and Leitrim have seen prices rise by more than 20%.

“There is no doubt that the tight market we have there and the tight supply, especially over the last two years with Covid, has had a real impact,” the minister said, but was supported by the recent pace of housing starts to 2022. .

He said the effort to make up for the supply shortages of the past decade had led to increased pressure on the second-hand market, particularly in Dublin and regional towns.

“But not exclusively. We are also witnessing the post-pandemic [shifts]Fortunately, people who move to the regions may find that they can work in the regions and that it’s not all Dublin-centric. This led to some increases in those areas, but from a lower base, he said.

In Berlin, Germany, voters expressed their anger at the housing market over the weekend via a non-binding vote demanding that the city-state’s new government buy out all landlords with more than 3,000 homes.

Reflecting on this decision, Mr O’Brien noted the commitment of the Irish government to a referendum on the right to housing.

“I don’t think there’s referendum fatigue in this country either, but I think we need to work on what the wording will be, what those changes will actually mean and underpin any referendum with the legislative basis so that it is actually implemented,” he said.

Mica Crisis

Meanwhile, the minister is due to meet families affected by the ongoing mica crisis in the northwest of the country on Wednesday, insisting nothing is ruled out when it comes to possible solutions.

He said a proposed package he will present to the government in the coming weeks will inevitably require state investment, but that “those responsible sectors and others” should also contribute.

He also played down reports that Housing Department officials told landlords they would not get the 100% remediation package they were asking for.

“I try to work collaboratively with them, but at the end of the day, as minister, I will make recommendations to my cabinet colleagues, not to my officials,” he said.

Penny D. Jackson