A survey of key housing industry experts conducted by law firm ByrneWallace and PII has revealed that construction cost inflation (83%) alongside planning permission and judicial review timelines (76%) are the two biggest challenges facing the sector.

The survey obtained views from 148 property industry experts from a variety of perspectives across real estate, developers, retail and capital finance, law, local councils, infrastructure, housing agencies, and consulting firms.

The survey was conducted ahead of a ByrneWallace ‘Housing Convention’ in association with Property Industry Ireland taking place at the Alex Hotel in Dublin today.

The event was attended by Tánaiste and enterprsie minister Leo Varadkar.

There out of four respondends expressed the view that with Ulster Bank and KBC exiting the market, either a state bank should be established or barriers that restrict other major banks from entering the Irish market should be removed.

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The same proportion agreed that private residential landlords need greater supports to reduce their exit from the market.

Seven out of 10 of the survey cohort said that a more tailored solution is needed to restrict bulk buyers of housing, and that the current blanket penal rate of stamp duty for all bulk housing purchases has the effect of reducing housing supply.

The survey also found that 90% of experts agree Ireland’s transport policy should be geared more towards public transport hubs serving strategic residential development zones, rather than suburban spread and car-dependent commuter towns.

In the context of concerns about increased regulatory burdens increasing construction costs and contributing to delay in new homes delivery, 60% of those surveyed believe that local authorities should have greater discretion on building regulations compliance approval.

Michael Walsh, chair of the ByrneWallace property group, commented: “Our industry survey demonstrates the clear need for reform to support the sector.

“Over half of respondents believe that although we are experiencing a 'moment in time' storm in the aftermath of the financial crisis, Covid-19 lockdowns, exiting banks, decreased labour availability, commodity inflation and interest rate rises.

“These pressures will not ease within the next two years. With the benefit of the solutions identified at the Convention, we will submit observations and recommendations to the Department of Housing, Planning and Local Government,” Walsh added.

Photo (l-r): Ivan Gaine of PII, Michael Walsh, Leo Varadkar and economist Dermot O’Leary. (Pic: Fennell Photography)