'Whole of Government" became a tangible reality on Tuesday at the launch of the Rebuilding Ireland – Action Plan for Housing and Homelessness. The Taoiseach and three Ministers were present, with name-checks to thank no fewer than three other Ministers. Most tellingly, the cover of the plan has no departmental logo. Instead there is only a harp and the words "This is an initiative of the Government of Ireland". The Housing Agency has been trying to make the case that our housing crisis would only be resolved once the underlying causes were addressed. These causes are multiple and complex.
At last, there is now a plan, budget and implementation process that addresses the full spectrum. The approach is weighted more heavily towards “supply-side” issues – instead of previous misguided “demand-side” approaches which often favoured incentives to buyers.
Holistic approach
Another welcome development is the emphasis on the management of housing issues, rather than just the old-school “bricks and mortar” approach. The plan addresses homeless prevention, delivery mechanisms, the rental sector and vacancy management. This holistic approach is long-overdue.
Another important aspect is the way “soft” issues have been given prominence. These include the emphasis on rental, affordability, vacancies and arrears. These issues still need expansion and development, but they are now part of the mainstream, so progress has begun.
The provisions on rental, still embryonic compared to detail in other sections, are crucial because finally they officially recognise the scale and importance of this sector – as Ireland converges with typical EU patterns of home-making.
A virtue of the approach is it concentrates on what government does best – creating the conditions for rebuilding by addressing land-supply, infrastructure, planning and rental regulation. Refreshingly, it also addresses what government could do better – reducing the time for departmental approvals in the social housing delivery system.
Attention to these actions is exactly what is required to create the conditions for recovery. The plan eschews “magic bullet” solutions and instead concentrates on the slow grind of reform and renewal.
Early analysis by many commentators has given the plan a cautious welcome while recognising that progress on implementation will be key. The energy and the attention of the Minister, together with the Taoiseach’s direct oversight and insistency on urgency give hope implementation will be well under way by the time the Dáil’s summer recess is over.
Now the Government has so clearly and comprehensively adopted a plan, it will be appropriate to challenge other major players. The construction sector must address affordable provision based on realistic profit levels in a context of new financing models. Developers must also innovate by addressing the long-neglected build-to-rent sector. Landlords need to increase in scale and adopt more professional approaches.
Recently, in this paper, Patsy McGarry questioned the effectiveness of charities – housing charities have now been given access to considerable funding so we need this sector to step up to the mark.
It is important to reflect upon our expectations about housing. Earlier this month, over 4,000 people rioted in Berlin about rents. Last week, London's mayor vowed to deal with the city's 8,000 rough sleepers. Other European cities also struggle with rough sleeping – Helsinki (4,000), Lisbon (2,000), Stockholm (1,500) and Glasgow (800). Dublin has an estimated 130.
Rental system
As a nation, we need to reassess policies driven by expectations of universal home ownership – an ideal with less relevance to a modern European mobile workforce who increasingly rent – especially in inner-urban areas. When over half of the population of the country’s economic heart are renters there is a strong political incentive to improve our rental system. At four pages, “Improving the Rental Sector” is one of the shortest sections of the plan.
The Housing Agency will continue to seek additional attention be given to arrears, affordability, rental reform and vacancies. These will offer solutions to demand, supply and cost factors. The agency will provide data and analysis to provide early warning of any return to oversupply or incentivisation of demand increases. The danger remains of encouraging the development of speculative housing in areas of low demand – under the guise of stimulating declining areas. This is what has already destroyed the value of housing in parts of rural Ireland.
These are exciting times. An innovative Government-wide initiative has begun, committing a huge part of our national resources to new ways of housing. If it succeeds we will not just resolve a crisis, we will be enriched as a compassionate and efficient country. It must succeed.
Conor Skehan is chairman of the Housing Agency