Property Industry Ireland Housing Manifesto...2015/11/09 · rental market, via rent supplement 5. The Department of the Environment, Community and Local Government (DECLG) – sets

Property Industry Ireland Housing Manifesto

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Property Industry Ireland

Housing Manifesto


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Property Industry Ireland (PII) was founded in 2011 as a

forum for debate and policy development amongst

businesses operating in the Irish construction and

property sectors.

Working as the Ibec sector for the property industry, PII

is a member-led representative organisation which

engages regularly with state agencies and policy-

makers to drive innovation in construction, property and

the built environment. PII organises a calendar of

briefings, seminars and conferences on issues of

relevance to the future of the sector.

Member firms represent the entire spectrum of the

sector, including legal and accountancy practices,

property and asset managers, developers and

contractors, as well as professional service providers

such as planners, architects, engineers and surveyors.

In 2015, Property Industry Ireland became a sectoral

association of Ibec, the leading business representative

organisation in Ireland, giving PII members unrivalled

access to key influencers.

Membership of PII is open to all businesses with an

interest in the Irish property and construction sectors.

What we do

We are an independent and inclusive representative

organisation for all sectors of the Irish property industry.

Our aims are:

To develop, propose and support national property

strategy, policies and solutions to problems

To create and maintain a central database for the

industry that provides an evidence-based foundation

for making decisions

To be the go-to organisation for government on all

aspects of property

To work with all stakeholders in the industry to

restore it to a sustainable position in the economy

To support job creation and retention of professional

industry capacity and skill

Our mission

Page 1

A vision for success in Housing

Page 2

Housing

Page 3

Infrastructure

Page 7

Planning

Page 9

About Property Industry Ireland

Page 11

Contents

Our mission

Through evidence-based research,

we inform and influence property

strategy in Ireland.

Our mission is to create a

sustainable property industry for

the benefit of the people of Ireland.


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provides design and construction policy and housing standards.

6. The Housing Agency – advises and develops policy

7. The Local Authorities – administer planning and design rules and deliver social housing

8. The Department of Health – sets policy for housing for people with disability and administers support mechanisms

9. The HSE – administers much of the money going into the not-for-profit social housing sector

10. An Bord Pleanála – sets planning policy in strategic development zones and hears appeals

11. Irish Water – provides water infrastructure

12. ESB – provides electricity infrastructure

This does not include IDA Ireland, the NRA or other

agencies which have an indirect role in ensuring

the delivery of high quality housing. In many other

countries, there would be a co-ordinated approach

to ensuring all these agencies perform their own

functions under an overall housing policy.

This manifesto has been produced to help all those

standing for elected office, and those who will

shape the priorities of the next government. It is

intended to show what policy reforms are

necessary to achieve that vision and how Ireland

will benefit through the implementation of these

recommendations.

¹Bill Nowlan Housing Supply in Ireland: Perennial Problems and Sustainable Solutions (2015)

A vision for success

in housing

Housing issues look likely to dominate the

forthcoming general election, as potential future

governments set out their programme for their

period in office.

A well-managed and sustainable housing sector

can help underpin economic growth and provide a

necessary component of Ireland’s economic and

social infrastructure to attract new investment and

provide an enriched quality of life.

The current crisis in the Irish housing system is

manifesting itself in a severe undersupply of

affordable, high quality housing, mortgage arrears

and escalating rents, and the horrors of

homelessness. Ireland has struggled to overcome

the legacy of building the wrong types of housing in

the wrong location, at the wrong time.

This is why it is vital that a future government takes

office with a strategic approach to joining together

the various agencies, departments and ministers to

deliver a sustainable and fair housing system in

Ireland.

Bill Nowlan, a well-respected commentator on

housing in Ireland, has identified twelve

government department and agencies whose work

must be co-ordinated for the housing system to

work¹:

1. The Central Bank – sets macro-prudential

lending policy

2. The Department of the Taoiseach – sets the

political agenda and co-ordinates Construction

2020

3. The Departments of Finance and Public Expenditure and Reform –sets taxation and spending parameters

4. The Department of Social Protection – sets housing subsidy parameters in the private rental market, via rent supplement

5. The Department of the Environment, Community and Local Government (DECLG) – sets planning policy and social housing policy,


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Housing Deliver high quality &

affordable housing across

Ireland

Through high levels of development levies and

taxes on the construction of property, non-

construction costs within the control of government

are having a delaying effect on the Irish property

market normalising and the provision of new,

quality housing.

PII Recommends

1. Reduce non-construction development

costs, taxes and development levies.

2. Provide greater transparency on how

development levies are set and used,

including revising the funding of local

government away from new homeowners.

3. Reduce VAT on the construction of new

homes to 9% for two years.

4. Conduct a national review of Section 48 and

Section 49 Development Contribution (i.e.

financial contribution) levies.

5. Conduct a review into the number of

Government Departments that input into the

provision of housing with a view to reducing

them to ensure greater efficiencies.

6. Streamline planning procedures for critical

infrastructures and social housing schemes.

7. In light of the housing crisis, elevate the

position of the Minister for Planning and

Housing to a main Cabinet position.

How Ireland benefits

Ireland will benefit because reducing the cost of

delivery of housing will reduce the cost of

ownership for the first and all subsequent owners.

Creating a property taxation regime which takes

into account the lifecycle of the building will make

the payment of taxes more transparent, fair and

equitable.

Getting the housing system right is

important for everyone in Ireland.

Tenants, home-owners and potential

homeowners all need a place to call

home. Government has an important role

in working with industry to ensure that

new housing is high quality, affordable

and energy-efficient. Government can

also play a leadership role in bringing

under-used and disused buildings back

into occupancy.

The social housing sector is an important

component part of Ireland’s housing

stock. Many of Ireland’s most vulnerable

people will rely on the State in one form

or another to build, manage or subsidise

their homes. A whole-of-government

approach is needed to make sure that

social housing agencies have the

capacity and skill to meet the needs of

their clients. Social housing is often

needed at a time when exchequer

resources are at their most depleted, so

Ireland needs a funding model which

works over the entire economic cycle,

Ensuring that the housing system works

will require the delivery of a sound

evidence-based vision. Census 2016 and

the national property price database

should play a stronger-role in putting real

-time housing data into the public

domain.


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Ensure available financing for

affordable housing

Attention is needed to ensure a competitive, well

funded supply of affordable housing. 20,916 new

homes are needed on average per year between

2015 and 2017.

The housing demand for one year alone exceeds

NAMA’s total responsibility to deliver 20,000 units

by 2020 and a range of competing suppliers are

needed.

NAMA can best achieve a social dividend through

the prioritisation of funding the delivery of social

and affordable housing.

PII Recommends

1. Ensure a variety of options are available for

financing of development.

2. Reform and support investment in the

private rental sector.

3. Address the Future Role of NAMA and

transfer its responsibility for delivering

20,000 housing units by 2020 to a separate

agency to ensure transparency.

4. Reconfigure the Housing Task Forces

(including that for Social Housing) to ensure

private sector input and participation

through a Clearing House mechanism.


Ireland will benefit by providing owner-occupiers

and tenants with a genuine choice of affordable,

quality housing, and increase Ireland’s

attractiveness to highly mobile workers.

Provide Fit-for-Purpose

Housing across all sectors

Ireland needs at least 25,000 new homes each

year to meet increased accommodation demands

driven by population growth in urban areas and

increased household formation. We are building at

least 50% fewer homes than we need. We need an

increase in the supply of affordable and quality

housing to meet this constantly growing demand.

PII Recommends

1. Accelerate the provision of purpose-built

accommodation for the active retired and

elderly people.

2. Harmonise apartment design standards into

a national suite of standards for studio and

larger apartment sizes.

3. Prioritise the use of site-specific

development guidelines to increase quality

design and promote brownfield urban

regeneration.

4. Reverse the policies that favour the

provision of one-off houses over multi-unit

developments in terms of Building

Regulation standards.

5. Review residential space standards to

ensure the potential for the residential use of

the upper floors of older under-utilised

structures.


Ensuring an adequate supply of new housing is the

soundest and most sustainable way of promoting

affordability for all. Housing is part of Ireland’s

critical economic infrastructure, and a lack of

suitable accommodation will have a negative

impact on Ireland’s competitiveness, attractiveness

to international investment and add to the cost of

doing business in Ireland.

Having an efficient housing system will mean that

young families as well as elderly people can live in

the most appropriate accommodation type, in

proximity to the public amenities which they need.


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Support affordable home

ownership

Our growing population raises the big question of

where we can call home. Under supply and rising

prices are putting severe pressure on young

families, job seekers and workers. There is a need

to address the challenge of tenants trying to build a

deposit whilst simultaneously paying rent. There is

a need to address the gap between wealthier

purchasers who the Central Bank restrictions are

not affecting, and those on lower incomes who

cannot meet the requirements.

PII Recommends

1. Work with the Central Bank of Ireland and

the banking sector to ensure the design and

application of lending regulations are fit for

purpose following a review of their

implementation.

2. Introduce a state-backed savings scheme to

allow first-time buyers to save for a deposit.


Ireland will benefit because more affordable and

quality housing to buy or rent will underpin national

competitiveness. It will make it easier for

companies to attract people to Ireland and to keep

people working in the country.

Build a sustainable rented

property sector

Following the introduction of Central Bank

mortgage rules, a greater cohort of people will be

renting for longer. Ireland needs to ensure access

to quality rented accommodation to be able to

compete with other European cities as a home for

mobile professional workers.

Tax policy is currently creating a disincentive for

landlords.

PII Recommends

1. Provide greater security of tenure in the

rental market through incentivising the use

of long-term leases. This would provide an

additional layer of transparency on rent

increases.

2. Increase the availability of purpose-built

rental accommodation for students.

3. Ensure equal tax treatment of landlords.


Ireland will benefit because more affordable and

quality housing to rent will give people genuine

choice of accommodation to suit their changing

needs.

Increasing the supply of housing to rent will help

tenants who wish to rent for longer.

Housing


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Delivering Social Housing in

a sustainable way

Ireland’s social housing waiting lists have

continued to grow and a homelessness crisis is

now looming following years of under-investment in

social housing and an over-reliance on Part V to

supply homes during the economic downturn.

PII Recommends

1. Accelerate capital investment in social

housing and harness private investment.

2. Fund construction of social housing through

sale of state property not currently in use.

3. Fast-Track planning of social housing.

4. Reform Part V to make it fit for purpose.

5. Improve asset management of social

housing.

6. Stimulate and promote the merger of

approved housing bodies to ensure that they

have the critical mass of units required to

assist in delivering on social housing needs.

7. Introduce greater controls to reduce and

regularise the number of Approved Housing

Bodies to ensure greater critical mass

among a reduced number of providers.

8. Expedite the publication of Ministerial

Guidance on the implementation procedures

relating to the revised Part V (Social

Housing) regime following enactment of the

Urban Regeneration and Housing Act, 2015

in September 2015.


Ireland will benefit by providing social housing to

tenants unable to pay market rents and address

the issue of homelessness.

Build an evidence-based

housing system

There still remains insufficient data on the Irish

property market collected at a national and regional

level. Good policy requires access to timely,

accurate and authoritative data on all aspects of

housing.

PII Recommends

1. Collect additional data at the next census

including on tenancy types (owner occupier,

rental, social housing etc.), as well as on the

stock of housing, occupancy of bedrooms

and availability of homes for trading-up/

down.

2. Increase the types of information collected

during housing transactions and improve

the datasets which are published on the

national property price register to include

the age, energy rating and number of

bedrooms of all properties sold.

3. Publish the 2014 review carried out on

behalf of the DECLG into six Planning

Authorities.

4. Conduct a review of the planning and

housing commitments set out in

Construction 2020 to establish deliverability

to date, and to establish whether some need

to be re-calibrated to ensure more efficient

delivery of housing.

5. Collate, publish and monitor public key

performance indicators for the provision of

planning services that expedite the delivery

of housing.


Ireland will benefit because additional data on the

property market will facilitate drafting of fit for

purpose development plans and the making of

development decisions by private actors in the

market. This will ensure that an over-supply of

housing will not occur, whilst at the same time

housing needs will be met.


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Prioritise public funding of

infrastructure to deliver

housing

The expanding labour force and end of net

migration will intensify demographic pressures that

already exist in the economy. Ireland has the

youngest population in Europe and is expected to

be its fastest growing over the next 30 years.

Despite this we have the second lowest level of

public capital investment in the EU. Under

investment in infrastructure holds back economic

growth.

PII Recommends

1. Invest an extra €12.5 billion into

infrastructure projects over the lifetime of

the government. The private sector will

provide two-thirds towards this amount but

the next Government will need to increase

its spending by €1 billion per annum.

2. Commit to spending €10 billion or 4% of

GDP annually on infrastructure by 2020.

3. Push for greater flexibility at a European

level on EU fiscal rules to support long-term

investment programmes.

4. Harness European Investment Bank funding

and the Ireland Strategic Investment Fund to

unlock potential housing development sites

through the funding of critical public

infrastructure.


Ireland will benefit because the economy can grow

by between 3% and 4% annually over the coming

decades, but only if we invest wisely now. Capital

expenditure is essential for enhancing the

productive capacity of the economy and thus

generating economic growth.

Infrastructure

Our population is the fastest growing in

Europe and needs smart investment in

transport, telecommunications, health,

education, water, environmental services

and energy to power a more productive

economy. With this in mind, we also need

to facilitate and increase the supply of

affordable and quality housing and

improve how our communities are linked.

Economic growth must be shared across

the country which is why a new long-term

spatial strategy is needed to provide the

basis to all major investment decisions.

An increase in the supply of affordable

and quality housing is needed to

accommodate our ever-growing

population. We must, however, be able to

deliver projects on time. Too many vital

infrastructure projects have been subject

to unnecessary delays, postponement or

cancellation due to planning and funding

delays.

Put simply, we need to be spending an

extra €2 billion every year because smart

investment in transport,

telecommunications, health, education,

water, environmental services and energy

will power a more productive economy.


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Make our cities more liveable

Our cities are in a global race for investment,

capital and talent that is intensifying all the time.

Dublin and our other cities need to be firmly

amongst the world's most liveable cities such as

Copenhagen, Amsterdam, Vienna, Sydney and

Vancouver. Yet, Irish cities lag behind their

competitors when it comes to infrastructure,

sustainability and the cost of doing business. Our

growing population is also putting additional

pressures on our cities. This affects our global

quality of life ranking. Investment decisions for

specific locations are made on the basis on the

quality of life they offer.

PII Recommends

1. Implement a new whole-of-Government

strategy to unlock the economic potential of

Irish cities. This should include establishing

the position of a directly-elected mayor for

each of our cities to better coordinate and

drive policies which will make our cities

more liveable. Mayors should be given

executive power over planning, transport,

the built environment, housing, regional

development, promotion and local economic

development.

2. Create a €25 million annual “town growth

fund” to support the revitalisation of town

centres. Funding can be sourced from

increased revenues from the Local Property

Tax and projects will be funded through a

competitive bidding process.


Ireland will benefit because our economy relies

heavily on the performance of our cities and better

functioning, sustainable and more vibrant cities will

ensure economic growth and continued social

advancement. Our cities need to be more

adaptable and capable of responding to the global

rise of city regions and accelerated urbanisation.

Internationally, directly-elected mayors are a key

feature of municipal government. They are seen as

a strong and vocal champion for their cities working

with national governments bodies and agencies

playing a key role in attracting inward investment.

Complete Ireland’s

infrastructural network

We need to spend wisely but what we spend must

match our ambition for the economy. We need to

prioritise investment to areas that will generate

economic growth. Bottlenecks, such as transport

and housing, are now emerging, which will hold

back growth. Let’s not repeat the mistakes of the

past by playing catch-up addressing gaps in

national infrastructure.

PII Recommends

1. Complete the motorway network by

connecting Dublin to the North West.

2. Continue to invest in our public transport,

such as the Dart Underground and core rail

system.

3. Improve access to and capacity in our ports

and airports.

4. Ensure rapid completion of the National

Broadband Plan.

5. Ensure investment in water and waste water

infrastructure is carried through without

delay.


Ireland will benefit because investment in

necessary infrastructure projects will have positive

impacts on productivity, employment and improved

standards of living by reducing transport costs,

connecting regions and attracting private sector

investment.


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Planning Speed up the delivery of

affordable housing

We must be able to deliver key projects on time.

Too many projects have been subject to

unnecessary delays, postponement or worse due

to planning issues. The planning process typically

adds up to a year in delivering a project, time which

usually increases with complexity of the project.

The planning process must take into account

economic and strategic considerations.

PII Recommends

1. Streamline planning procedures for critical

infrastructure and social housing schemes,

and carry out a review of capacity of the

planning teams across all 31 planning

authorities to ensure the best use of

resources for their population.

2. Amend legislation to facilitate joint oral

hearings for strategic projects that involve a

number of consent authorities (e.g. An Bord

Pleanála, the EPA, etc.). Introduce a zero-

tolerance position on the invalidation of

planning applications.

3. Purse a national e-planning strategy,

including the creation of a national planning

portal.

4. Introduce statutory deadlines for the receipt

of formal responses from planning

authorities following the submission of

planning condition compliance material from

developers, including agreements on Part V

provision.


Ireland will benefit because streamlining the

planning process will speed up the delivery of

much-needed infrastructure and reduce

unnecessary costs with projects. It would provide

much needed confidence for investors in Irish

projects and improve our reputation as a place to

do business.

The Planning System is central to the

issue of the provision of housing: the

preamble to the legislation that underpins

planning in Ireland – the Planning and

Development Acts 2000-2015 – focuses

on housing. It states that collectively the

Acts are designed “to provide, in the

interests of the common good, for proper

planning and sustainable development

including the provision of housing …”

Planning is an emotive and often divisive

issue. Proper planning requires that in

the shift from the much-criticised era of

(perceived) “developer-led planning” to

“plan-led development” such planning

policies be tested against viability

criteria. This should help to ensure that

plans - from the anticipated replacement

National Planning Strategy to local plans

at the village-scale level - are assessed

prior to adoption to ensure that they are

both viable and will deliver certainty.

Good planning should be rigorous but

not bureaucratic. It should be fair,

transparent and focus on the serving of

the common good. Ireland needs a

planning system which allows viable,

sensible, quality developments to

proceed onto construction and into

occupation in an orderly fashion.


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Planning for Ireland’s future

We must be able to deliver key projects on time.

Too many projects have been subject to

unnecessary delays, postponement or worse due

to planning issues. The planning process typically

adds up to a year in delivering a project, time which

usually increases with complexity of the project.

The planning process must take into account

economic and strategic considerations.

PII Recommends

1. Expedite the expansion and subsequent

adoption of anticipated Planning Bill No. 2

(that follows on from the Urban

Regeneration and Housing Act, 2015, and

addresses the establishment of the Office of

the Planning Regulator, miscellaneous

provisions, etc.) and conduct a thorough

review of the Irish Planning system to

ensure its full compliance with European

legislation (including the full transposition of

Directives).

2. Ensure that An Bord Pleanála and the 31

planning authorities are adequately

resourced to deliver a customer-focused

service, and prioritise the implementation of

the recommendations of the An Bord

Pleanála review group. Publish the 2014

review by DECLG into six planning

authorities, and carry out a review of the

eight designated Strategic Development

Zones to date to establish the efficacy in

delivering development of economic or

social importance to the State.

3. Standardise national zoning bands and

classifications in line with the DECLG’s

initial studies.

4. Review planning legislation to remove

further minor works to residential properties

from the need to secure permission for

development.


Ireland will benefit because streamlining the

planning process will speed up the delivery of

much-needed infrastructure and reduce

unnecessary costs with projects. It would provide

much needed confidence for investors in Irish

projects and improve our reputation as a place to

do business.


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PII Council

Aidan O’Hogan, Property Byte Ltd. (Chairman)

Patricia O’Brien, PJ O’Driscoll & Sons, Solicitors

Tony Reddy, Reddy Architecture + Urbanism

Padraic Whelan, Deloitte

Michael O’Flynn, O’Flynn Group

Jim Gallagher, Lafferty

Tom Phillips, Tom Phillips + Associates

Cormac O’Rourke, Goodbody Stockbrokers

Mark FitzGerald, Sherry FitzGerald

Policy Committee Chairs

Executive Committee –

Michael O’Flynn, O’Flynn Group

Technical and Construction Issues –

Jim Gallagher, Lafferty

Planning and Development –

Tom Phillips, Tom Phillips + Associates

Funding Initiatives –

Michele Connolly, KPMG Corporate Finance

Market Supply and Demand –

Mark FitzGerald, Sherry FitzGerald

Executive

Peter Stafford, Director

David Howard, Policy Executive

Contact us

Email: [email protected]

Tel: 01 605 1666

Web: www.propertyindustry.ie

Recent publications

The Property Industry – Rebuilding Ireland’s

Economy (2011)

Development of Infrastructure Bonds (2011)

Real Estate Investment Trusts for Ireland (2012)

Putting the Residential Property Market on a

Sustainable Footing (2012)

Planning a better future: a report on reform of the

Irish Planning System (2012)

Towards a National Property Strategy (2013)

Delivering Ireland’s Property Needs (2014)

A National Spatial and Development Plan for

Ireland (2014)

The Cost of Construction in Ireland: A European

comparison (2014)

Investing in Social Housing (2014)

Planning a Better Future: Planning legislation

reform for 2015 (2015)

Property Industry Ireland

About us


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Stay informed


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Dublin (Head Office)

84/86 Lower Baggot Street

Dublin 2

T: + 353 1 605 1500

E: [email protected]

W: www.ibec.ie/membership

Galway

Ross House

Victoria Place

Galway

T: + 353 91 561 109


W: www.ibec.ie/west

Cork

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Douglas Road

Cork

T: + 353 21 429 5511


W: www.ibec.ie/cork

Brussels

Avenue de Cortenbergh

89, Box 2

B-1000 Brussels

Belgium

T: + 32 (0)2 512 33 33

F: + 32 (0)2 512 13 53


W: www.ibec.ie/europe

Limerick

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T: + 353 61 410 411


W: www.ibec.ie/midwest

Donegal

3rd Floor, Pier One Quay

Street

Donegal Town Donegal

T: + 353 74 972 2474


W: www.ibec.ie/northwest

Documents

Property Industry Ireland Housing Manifesto...2015/11/09 · rental market, via rent supplement 5. The Department of the Environment, Community and Local Government (DECLG) – sets