No quick solution to our housing problem

As we are still in the depths of the silly season, it would be tempting to dismiss all the issues being floated in the media …

As we are still in the depths of the silly season, it would be tempting to dismiss all the issues being floated in the media as, well, "silly". But some of the stories which keep cropping up are there entirely on merit, even if they would receive less coverage at other times of the year. The housing crisis is one of them.

On the face of it, the problem is simple: we don't have enough houses. The solution is equally straightforward: we should build more houses. But it just isn't that simple.

Yes, we are short of houses. It is estimated that there are 38,000 people on waiting lists for local authority housing. There are many more from almost every social grouping who just cannot afford the sort of home they want.

Many with lower to middle incomes either cannot even consider buying a house, or are taking out mortgages which they can just about pay. For now. But interest rates change and when they are as low as they are now the likelihood is that they will go up. And then these people will find they have mortgages they can't pay.

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And if we ignore the situation it won't go away. It will get a lot worse. The last demographic report from the Central Statistics Office shows our population will grow steadily for the next 30 years.

Many Irish people are returning to the country, having headed off to pastures greener during the 1980s. They are bringing with them skills which our economy desperately needs. But the price of living here is getting prohibitive, and this vital source of expertise will dry up.

The problem is straightforward and obvious. The solution is not. Sure, it would be possible to buy up land around our existing towns and cities and build houses on them. But people don't just need four walls and a roof. They need roads so they can get to work or go shopping. They need electricity. They need phone lines, water and a sewerage system. They need fresh water. They need a sewage system. They need their bins collected. They need schools, shops and playgrounds. This business of building houses conceals a panoply of hidden expense. A house without infrastructure is almost no use.

Recently, the Minister for the Environment, Mr Dempsey, let it be known that he intends to introduce legislation to force those building housing developments to include a sizeable percentage of affordable housing.

This looks like a neat solution. The developers will put much of the required infrastructure in place so they can sell the houses for a healthy profit. At the same time, the State will benefit from a number of less expansive dwellings being constructed which can take advantage of those roads and green spaces.

After all, the cost of building these estates has not risen in line with house prices. The land is dearer but the construction costs are not. The developers are making healthy profits.

Unfortunately, and not terribly surprisingly, they do not see the housing crisis as their problem. Through the Irish House Builders' Association (IHBA) they have made it clear that they will fight this legislation on constitutional grounds.

I have no doubt that before this idea was mooted, the Minister sought the best legal advice on its constitutionality and the IHBA has taken similar steps. Whatever the outcome of the challenge to this new law it is likely to be delayed for some time. And it was never going to solve the whole problem anyway.

A recent report from the Royal Institute of the Architects of Ireland (RIAI) may provide the solution, but it's not one we'll be all that keen on. The report, entitled The Housing Crisis - Is Higher Density a Solution?, points out that Dublin has a relatively low population density.

There are between 2,000 and 4,000 people living in Dublin per square kilometre. This is nowhere near as high as other European cities like Brussels or Turin. Logically, they suggest that the solution to the housing problems in our cities can be met by high-density developments.

It would, they point out, allow for the development of public transport which will be necessary for us to meet our commitments on controlling "greenhouse" gasses and other pollutants produced by traffic.

However, that brings to mind our experiment with tower blocks which so dismally failed. I'm sure they are not offering to roll back the advances in city planning and what they are talking about are high-density apartment complexes.

Yet even that suggestion will have to overcome a basic Irish reflex. We like to own a bit of land. Even if it's a microscopic front and back garden. It isn't desperately logical but it is real. Purchasing an apartment still feels a little unreal. Effectively, you are being asked to pay £100,000 for a box of space anything up to 50 ft off the ground. It's just not solid enough.

And even if we do get them built, the majority may end up in the hands of landlords. And yet another seismic shift in behaviour will be required as we'll have to get used to another European model - never owning your home. We'll have to get past the idea that rent is just money down the drain. It isn't; quite apart from the roof over your head and the flexibility to move when and to where you wish, it also sets up a contract between you and your landlord.

The problem with that solution is that seismic shifts take a long time. And that seems to be something that we keep coming up against when we talk about this issue. There simply isn't a quick solution no matter how much money is thrown at the problem.

So expect to see lots of stories next silly season about the housing crisis. It won't mean nothing has been done, it will just be happening slowly.