Those who were born in the baby boom of the late 1960s and early 1970s are now in their late 20s and early 30s. Born into a poorer Ireland, they reached adulthood in the early 1990s. In many respects, their education, training, productivity and attractiveness to foreign employers formed the backbone of the present economic boom.
Despite the harsh economic realities of their childhood and teenage years, these people came to adulthood with one thing in common. They had an expectation, deeply embedded in the Irish psyche, that they would one day own their own home. Most of their parents, even those on low incomes, had managed this.
And so it is that during the past couple of years these young men and women have been trying to purchase their first houses or apartments, to gain a toe-hold on the property ladder. They have found their efforts frustrated by the housing market. There are not enough houses or apartments available and prices have rocketed. There is a serious imbalance between supply and demand.
Also, our system of house-sale by auction has resulted in some unbelievable prices being obtained for very ordinary houses, and this has inevitably contributed to the problem. Whatever the cause, this shortage of affordable housing is one of the most serious problems with which prosperity has presented us.
The situation may at times appear hopeless. The average industrial worker in Ireland today is paid about £1,300 a month, before tax. The average new home in Dublin costs well over £150,000. The number of houses available at this figure are few and far between, but even if the average worker was lucky enough to secure one, he or she would be facing a mortgage of at least £800 a month, which is an untenable burden. Many young people are having to consider an even larger mortgage.
Young couples with children have an even greater problem. Because of the tyranny of their mortgage repayments, they no longer have the choice of the mother (or in some cases the father) staying at home, even for a period, to care for the family. They then have the added expense of creches and enter into a spiral of expense which seriously affects the quality of their lives.
The Government is aware of and concerned about this problem. Policy is three-pronged. First, we have to create the conditions to increase supply to the new higher target level of about 55,000 private-house completions a year. Second, we have to stabilise the market by reducing speculative demand. Third, we have to focus on improving affordability by focusing on first-time buyers and increasing the provision of social or affordable housing.
Already, new houses are being built at a rate five times that of the United Kingdom. The results are now becoming evident; for the second time this year the figures for new house prices in Dublin have shown a decrease, while nationally house-price rise was just 1.2 per cent. This is a pretty clear indication that Government action to stabilise the housing market is beginning to prove effective.
It is fair to say that this Government is placing a greater emphasis on the social housing and local authority part of the housing market. Last week, for example, local authorities were authorised to build or acquire an extra 3,000 houses, on top of their present allocations. There is a critical level of housing needed in this area, and with waiting lists already too long, this is the sort of action urgently required.
Building will begin on about 5,000 local authority houses this year. The radical 20 per cent social housing requirement for new developments will also add greatly to this sector. The Government's priority must remain housing for those who have no hope whatever of housing themselves.
One of the startling facts about the housing debate is that much of the work now under way should have been done in the 1990s. The National Development Plan, which provides for massively increased investment in roads, water, sewerage and public transport so necessary to support housing development, was forged by the present Taoiseach. Why not earlier? Much of the money was already there.
It is little comfort to the many anxious young people, particularly those in the income bracket which precludes them from local authority housing, to be told that much of the responsibility for their present difficulties lies with previous governments.
Their need is now. Anecdotal evidence suggests they are dealing with the problem in various ways, many of them very disheartening. The lucky few who have wealthy parents have their houses bought for them.
Some parents who are far from wealthy go to endless lengths to help their young people and to house these "new homeless". Some have taken out new mortgages on their own homes; others have even sold their homes and moved into apartments to have the extra cash to help their children.
Many middle-aged couples, particularly in urban areas, find their very grown-up children still living with them, simply because they cannot afford to move out. The result of this can be that middle-aged and older people who should be enjoying some of the fruits of their long years of work will find themselves a lot less well off than they might have hoped.
One of the unique aspects of Ireland is the expectation I referred to earlier, of all of us that we should own our own house, or at least an apartment. This has been our tradition through many generations. However, in many cities of Europe people opt for renting their accommodation for their entire lives. In fact, in many cities renting is more common than property ownership. Unfortunately this is not a choice in Ireland as there is no long-term security for tenants.
In the present climate people who are renting are in constant fear of their rent being raised to levels they cannot afford. Perhaps we should be thinking of amending the law to provide some sort of security of tenure for people in rented accommodation.
The thought has also occurred to me that perhaps the Minister for the Environment might consider a project whereby the Government would invest in property, with a view to letting it at an economic rent to those who are unable to afford a house, but who are outside the local authority income bracket.
This accommodation would provide security of tenure to the tenant, with rents only increasing in accordance with the cost-of-living index. It is just a thought.
However, the latest evidence that the situation in our housing market is easing is somewhat reassuring. The plans which Noel Dempsey is presently implementing are working and the problem will hopefully resolve itself in time. Nevertheless it is still very hard on the young people who are experiencing the situation today.
One can only assure them that it is not for ever, and this Government and successive governments will work as hard as possible to make sure that everyone has that very basic requirement, a roof over their heads.