IHREC Upset Over Eoghan Murphy

Homelessness is increasing drastically throughout Ireland due to the rising property prices and shortage of available properties for sale or rent. Homelessness numbers reached 10,378 people at the end of April with almost 40 percent being children. In response the government has initiated some new programs and taken action into building social housing. Housing Minister, Eoghan Murphy, has claimed that his new Rebuilding Ireland Program has been working well since he implemented it.

Has Eoghan Murphy spent enough time and effort solving homelessness?

Emily Logan, Head of the Human Rights Body for the Irish Human Rights and Equality Commission (IHREC), would say otherwise. The IHREC accused the government of blaming this crisis as, “the by-product of market dynamics, or the price our society pays for progress.” Part of the housing shortage and rise in homelessness can be contributed to market problems, but the government needs to step up and take more action into drafting policies that would make a significant difference. The IHREC is very blunt when it comes to pointing the finger, they stated that the rising level of …

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Ireland is Searching for Additional Construction Workers to Solve Housing Shortage

Ireland has a population growth of more than five times compared to the EU average. In the year 2017, Ireland’s population rose by 1.1% per annum, a lot larger than the average for the EU of .2%. Additionally, Ireland had the highest birth rate of any EU member with 12.9 births per 1000 people.

A growing population is great for the economy; however, it causes additional problems as well. One of these problems is a major housing shortage, especially within the more densely populated cities, like Dublin.

One of the roadblocks that Ireland faces with improving the housing shortage is the lack of construction workers. At the current rate, it will be nearly impossible to keep up with the growing population in densely populated Irish cities. Attracting construction workers from abroad could be a short-term fix and become long-term. Additionally, an increase in construction workers would stabilize pay and lower costs for construction companies. Professor Alan Ahearne, Director of Whitaker Institute and Professor of Economics at the National University of Ireland, is worried that a large influx of workers would …

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Regular wages and purchasing homes

In the current market, there is an increasing want and need for housing in Ireland, especially in populated cities such as Dublin. With this increasing demand, prices of homes and rent are rising each year. One problem that many soon-to-be or want-to-be home owners face now is the inability to effectively save for a home when they are paying high rent fees month after month.

The Central Statistics Office of Ireland notes that the average full time worker made around €45,611, while an average part time worker made around €16,600. Using surveys on these two numbers, we can say that the average worker in Dublin makes around €37,000 per year.

These numbers seem to allow a single person to be able to obtain a mortgage and afford a home, but if you were to add into the equation any additional expenses, such as children, rent or transportation, there would be a significant amount of money deducted from those average numbers.

The national average rent in Ireland is €1,122 per month. If you are interesting in living in Dublin, …

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Brexit takes more than just UK funds

As we are all well aware of by now, Brexit may affect the Irish economy. Although, one key part of the economy that we tend to overlook when it comes to this massive change is construction, which can and does play a significant role in our day-to-day life decisions.

Construction is much more intricate than just having laborers come in, swing around some tools, and build a structure. Specifics in supply and demand of laborers, resources, time, materials, consumers, money and a multitude of others aspects all play a part in construction outputs.

If Brexit is to occur, especially a no deal Brexit, there are a number of barriers that can arise. These barriers can and will be placed on construction companies, especially those currently working on a project. Some of these barriers include a reduced labor force, slower materials delivery, and possible construction penalties.

What current construction workers point out is that there is a steady decline in the amount of workers each year, and an even steadier decline in quality construction workers. If a hard …

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BPFI Housing Market Monitor Report Explained

The Banking & Payments Federation Ireland released their latest Housing Market Monitor report today. It consisted of many different numbers and statistics that will be explained in this blog.

Ireland has consistently seen a large influx of newcomers recently. In the first quarter of 2019, it was reported that the number of housing commencements increased by 31.6% compared to the first quarter of 2018. Additionally, 5,800 housing commencements were registered during that same time period. These numbers are good signs for the Irish people. An increase of new construction will help out with the shortage of houses available and allow for a continually growing economy.

In response to the increase in number of housing projects, one would also expect the number of mortgages given out to increase as well. Mortgage approvals grew 9.2% in the first quarter, while mortgage drawdowns increased by 8.9%. Increase in the number of mortgage approvals can raise some red flags. Mortgage defaults can be deadly for both parties involved, however, with Ireland’s growing economy, defaults should not be an added worry.

The major increases in …

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Expanding Housing & Development: New Sites

Three new building sites have become available for development. As of early this week, Savills brought three properties to the market that will allow for development. The properties are located near Citywest Business Campus in Dublin, Kilkenny, and north Dublin.

The Citywest property is listed on the market for the price of €5.6 million. The site has been defined as 9.7 acres amounting to a little more than €1.7 million per acre. The property is also available at €3.25 million for one 5 acre plot or 4.7 acre plot. The objective of this property was defined as to “to provide for enterprise and employment-related uses”. This new property listing can be greatly beneficial for Dublin. Introducing a 10 acre plot can be developed and create new jobs and housing.

The second property in North Dublin that has been listed at a starting price of about of €2 million. This lot amount to about three acres. The price per acre is about €1.5 million. The property has planning permission to develop 35 residential units, and may have potential for an additional five homes …

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Cuckoo Funds

Cuckoo Funds has been recently used to describe big investors. Some of the main investors that comprise of the cuckoo funds are large institutional investors like pension funds, real estate investment trusts (REITs) and special private rental firms. These investors pour money into developments that cannot be purchased by the average individual or family. The developments funded by “cuckoo funds” are classified as build-to-rent. Investors are increasingly interested in attempting to tap into the growing demand for Irelands rental market.

These cuckoo funds are named accordingly because they have been seen to push first time buyers out of the market. Cuckoo funds have had significant impacts on investors and buyers in the market.

Benefits to the large investors can be defined by the ability to build apartments that do not have restrictions on maximum number of apartments per floor. Another benefit for a developer willing to invest in build to rent is that they are allowed flexibility in comparison to other developments in regard to amenities and storage. These cuckoo funds are also seen as controversial due to favorable …

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Illegal Irish flats similar to US university housing

During the month of May, a property in the city of Dublin was advertised as a flat, accommodating up to eight people comfortably. This listing, seemed normal to many prospective renters until they looked at the photographs.

This alleged flat seemed to many to be a converted office building. Upon further inspection, it was easy to see that this five bath, eight bed, and shared kitchen space were not exactly up to legal regulations, although this is conveyed as the least important aspect.

What most people seem to be most appalled by is the lack of privacy, and in some aspects, personal space that come from the conversion of an old workplace. The blocks of office areas were broken into two, leaving renters with thin walls between their two rooms.

Additionally, one of the rooms had three single beds pictured in one of the so-called rooms. This also put people in a frenzy, criticizing the renters on their lack of space management. In the end, it was found that this flat did not have the correct paperwork or …

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Affordable Housing Options Heading to Dublin

Three council-owned sites have been offered to developers under the condition that affordable homes are built in its place. Dublin City Council who offered up the sites are attempting to tackle the rising prices in Dublin and offer reasonable priced houses, apartments, and duplexes at three different sites. Over 370 homes will be built starting at €116,000 aimed at attracting low and middle-income buyers.

Average house prices in Dublin have grown over 4% in the first couple of months this year outperforming the national average by over 1%. Dublin’s current average house price is €383,000 and many people are having trouble affording homes in the city. Dublin City Council aims to start prices at €267,000 less than the current average which will allow for more diversity within Dublin’s housing market makeup.

The least expensive of the new homes being built are the two Ballymun sites. One Ballymun site will be located on Sillogue Road near Main Street. The other site will be listed on Balbutcher Lane. Options will include a one-bedroom apartment, two-bedroom duplex and house, three-bedroom duplex and house, …

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