Housing in Ireland

A key characteristic of housing in Ireland for many years has been the high level of owner occupation as compared with other forms of housing tenure. The move towards owner occupation as the dominant form of housing tenure in Ireland has been a gradual process throughout the twentieth century. For example, in 1922 owner occupation stood at less than 10% with a more balanced spread between social rented and private rented tenure. The chart below shows that owner occupation has steadily increased since 1961.

- Source: ICSH publications

By comparison, across the rest of the world, a very different trend is evident. In many such countries, owner occupation is still the most popular form of tenure, however not to the same overwhelming extent that it is in Ireland.

- Source: ICSH publications

In Ireland the trend towards owner occupation as the dominant form of tenure has changed somewhat in recent years due to the escalation in house prices that took place throughout the last decade. This made home ownership less and less attainable for many. The numbers of people on waiting lists for social housing rose accordingly as many people were unable to access secure and affordable rental accommodation.

According to the NESC Report 'Housing in Ireland: Performance and Policy' (2004) the main reasons for the rate in increase in house prices were:

• Demographic and household formation changes
• Economic growth with particular impact on employment growth
• Increased disposable income and lower direct taxes
• Low mortgage interest rates
• A shortage of serviced developed land
• Increases in the price of development land
• Labour shortages
• Investor and general speculative activity
• Immigration

The overall effect of these forces was that house price increases proved to be detrimental for those on low to moderate incomes. A range of affordable housing schemes were introduced in the last decade to counteract this trend and attempt to make owner occupation more attainable for people on moderate incomes.

The chart below shows the changes in house prices in Ireland from 1990 to 2008, including the rapid rises and the beginning of the current collapse in prices.

Source: 'Annual Housing Statistics Bulletins', Department of the Environment, Heritage and Local Government and ICSH publications

Despite record levels of private housing output throughout the last decade, the increase in house prices was exponential. House prices reached their peak in 2007 and have begun to decline sharply since then. One of the effects of the rapid increase in house prices on the home ownership market was the increasing numbers of people on the waiting lists of local authorities throughout the country. The information compiled in the housing needs assessment of 2005 indicated that 43,684 households were in need of social housing, while the 2008 assessment showed that there were 56,249 households registered with local authorities for social housing. This was a 28.8% increase in only 3 years. When it is considered that housing needs assessments have traditionally under-represented the housing requirements of special needs groups, it is very likely that the true figure is much higher.

Despite house price decreases, problems with housing affordability continue. This was the main reason cited for 57% of households included on local authority waiting lists in 2005 and 53% in 2008. This compares with 34% in 1999.

The total number of elderly included in the 2008 assessment was 2,499. The number of disabled persons assessed was 1,155. However from anecdotal evidence and based on demand for housing from voluntary housing organisations who provide housing for the elderly and people with disabilities, it would seem that these numbers do not reflect the true demand and is in fact far short of it.

Taking into account reservations regarding the accuracy of the assessment and consistency between local authorities this marked increase in housing need demonstrates the continued role for social housing in meeting the accommodation needs of those on the lowest incomes. There is clearly a need to continue to increase annual social housing new build programmes in order to reach a level where social rented housing can meet this sustained demand.

- Source: ICSH publications

The provision of social housing has traditionally been within the remit of the local authorities. A thriving voluntary housing sector, which pre-dates the establishment of local authorities, has grown rapidly in recent years to provide housing for low-income families and for vulnerable people with special needs. This housing provision is generally seen as a voluntary local response to a social need, which focuses on both the housing need and other vital services.

- Source: ICSH publications

These recent developments pose many challenges for the provision of housing and to all sections of the population in housing need, especially those who are more vulnerable in our society. The strengthening and expansion of the voluntary housing movement is of critical importance in providing adequate housing solutions to alleviate this current situation.