Housing and the Changing Demographics of Ireland

In order to solve the housing crisis, policy makers must consider changing demographics and plan for long term methods to resolve the housing crisis. According to Engineer’s Ireland review of housing in the The state of Ireland 2019, projections of future Irish population is increasing in number, age and diversity. The population is expected to grow from 2.78 people in 2017 to between 5.6 to 6.7 million people in 2051. The median forecast was defined as approximately 6.2 million people. An additional 1.48 million people must be housed in the next 32 years.

Future demographic projections are essential in forming adequate long term planning in regard to housing in Ireland. Due to the significant projected increase in population size, there is great demand to increase housing supply and plan accordingly.  The current average size of an Irish household is 2.7 people per home. If the average household size remains the same, the number of homes supplied must amount to at least 548,148 additional units by 2051. This amounts to an average of 15,661 additional housing units must supplied each year …

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Short Sale Loans or Negative Equity Loans

We were asked to make a presentation to the Department of Finance’s ‘Expert Group on Mortgage Arrears’ which is made up of the main interest groups and representative bodies in finance and housing. This firm has long been an advocate of market oriented solutions (short sales, moving paper etc.). However, in Ireland there are several issues.

Firstly, short-sales are not possible because of the manner in which recourse to the loan exists, it is on the person and not just the asset, this gives no incentive to lenders to accept a short sale except for people who are already financially strong, our debt laws also work against the borrower.

Secondly, as a shareholder in the banks it may not be in the interest of the shareholder (taxpayer) to bail out the individual, personally I don’t want to continue to shoulder costs for anybody, not our banks, borrowers or anybody else, I want taxes to go toward vital services and not much else. Any scheme should be revenue neutral or profitable.

That is where the idea …

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