House prices will be major focus of post-bailout surveillance mission – Hayes
Commissioner for Economic and Financial Affairs has confirmed in a letter to Brian Hayes MEP that the Commission is closely monitoring house prices in Ireland and will examine the issues as part of the Commission’s post-bailout surveillance mission which takes place today until Friday.
“Commissioner Moscovici has made it absolutely clear that the Commission considers the rising levels of house prices in Ireland a significant threat to the stability of our economy.
“Today begins the 7th post bailout surveillance mission to Ireland. It is very likely that housing will be the main issue of focus. Housing supply will be a persistent problem for many governments to come and we need to use all the expertise we can get to resolve it.
“Mr. Moscovici has rightly said that the only durable way to address the lack of affordable housing is to build an adequate supply. The government’s 2020 housing strategy is tackling this issue but it will obviously take time for new builds to be completed and to address persistent housing supply bottlenecks.
“The housing crisis has affected urban areas badly, particularly Dublin. Rents have skyrocketed due to the difficulty that many people face getting onto the property ladder. We want a stable rental market into the future but that can only come about if we have a modernised housing market. The two work hand in hand.
“One of the key issues for Dublin is the cost of construction. Planning rules are also putting a serious restriction on getting new builds started.
“It is important that we use the expertise from the Commission to determine what has worked in other EU Member States when developing a modern housing policy. Obviously, every country is unique but there is best practice that we can follow in certain areas.”