2014-04-22 - Socio Economic Review 2014 - Full text and cover - FINAL

S O C I O - E C O N O M I C R E V I E W 2 0 1 4
7.
H O U S I N G A N D
A C C O M M O D AT I O N
CORE POLICY OBJECTIVE: HOUSING & ACCOMMODATION
To ensure that adequate and appropriate accommodation is available for all people
and to develop an equitable system for allocating resources within the housing sector
Issues relating to housing and accommodation have featured prominently in policy
debates in Ireland over recent years. Most of this has been concerned with the
provision and cost of privately owned accommodation. However, more recent
developments in the area of housing relate to challenges involving the large surplus
housing stock in areas of low demand, and low housing stock in areas of high
demand, high levels of mortgage arrears, unfinished developments and increasing
social housing need, as well as changes in tenure patterns and the focus of housing
policy. All of these issues are discussed in this chapter and they all relate to one
element of Social Justice Ireland’s core policy framework (see chapter 2) ‘Enhance
Social Provision’.
During the boom years, Ireland experienced an astonishing growth in property
construction and house prices. Initially the increase in housing construction was
a response to rising demand, as a result of a sustained growth in the population,
low interest rates and increasing income per capita. As noted in chapter 2, this
situation changed and construction was promoted and supported as an end in itself
because it appeared to generate economic growth. Construction became a major
element and driver of the Irish economy. Housing construction increased at a rate
which was not supported by demand. The result was a housing bubble which
contributed to the economic crisis. According to Kitchin et.al (2010), poor financial
and planning regulations, along with tax incentives, served to support this negative
phenomenon.
7. Housing and Accommodation 137