Room to Improve presenter Dermot Bannon spoke about the housing crisis in Ireland and what we need to do about it.
The housing crisis is at the stage where the supply is insufficient to meet the demand of first-time buyers, who cannot afford a house, and renters who are struggling to find affordable property. to live there temporarily.
Talk to Extra.ieDermot has revealed his thoughts on the housing crisis and what needs to change in Ireland for things to improve.
“We have a huge housing shortage in this country, if we had enough supply the demand wouldn’t be there. What drives up rental and purchase prices is that for every home that needs to be rented or purchased, there are probably 10 or 20 people looking for that home.
“They are bidding against each other and someone is willing to outbid the landlords even raise the rent. We really need to start building houses and building more.
“We need to build social and affordable housing. We have to build houses that people can buy. We need bigger homes so people moving into them can move upmarket and then leave the supply of smaller homes to first-time buyers.
According to the Dermot, the problem is that the level of supply has “exasperated over the past two years because the industry has closed”. Factors such as “the Suez Canal and Brexit” also led to a “small price increase in everything”.
Sadly, Dermot sees no ‘easy solution’, saying ‘I could turn around and say ‘do you see what they are doing in Vienna with social housing’, but it’s a whole generation changing and forcing everything the world to change its state of mind.
“Irish people like to own their own home if they can. They like that level of security, “okay, that’s mine and that’s what I’ll pay for the rest of my life”, there’s a certain security in that.
“We just need more supply, we need to create and we need to build. At the time of the last crash, we were building 90,000 houses a year. We’re building away from that now. Yet we are building less now that our population is growing. ‘
Although the economy is “bumpy” after the pandemic, with some people making more money, Dermot says, it makes it difficult for people who don’t make a lot of money.
“As people make more money, they can bid more on homes. That means people who are just starting out in their careers, first-time buyers and people who don’t make a lot of money are struggling.
“They can’t pay the deposit or save for the deposit, nor can they pay the deposit for the rent.”
“Something has to happen and something has to change over the next couple of years. What we really need to do is keep reducing supply and trying to increase our supply numbers so that we have homes for people,’ he said.
Dermot is currently on Irish screens for the 13th season of Room to Improve, which he says is better than ever after a two-year hiatus.
Room to Improve will air on Sunday 27 February at 9.30pm on RTÉ One & RTÉ Player.