There has been a lot of emphasis recently put on the supply of housing, particularly in our cities, but emphasis has to be on the supply of affordable housing to avoid making the mistakes of the past.
Affordable, high-quality housing provision will reduce poverty and inequality, improve quality of life, increase international competitiveness, increase disposable income, and will have a bigger impact on the lives of more Irish citizens than almost any other policy intervention.
We need to collectively define what we consider to be an affordable “home” – whether to rent or buy. A general rule of thumb is that your housing costs should be no more than one-third of your net income.
Affordability means being able to live in a suitable home for your needs and being able to sustain rent or mortgage payments should your circumstances change.
Security in your home is vital and should never be precarious. Affordability means to have wriggle room should such costs go up or income reduce unexpectedly, as well as an ability to pay for other living costs such as household bills, commuting and childcare.
Affordability means no one is forced to make long-distance commutes. Affordability goes hand-in-hand with stability.
The Housing Agency recognises there is a need to support moves to stimulate housing supply, but initiatives cannot simply serve as tax breaks with little direct benefit for households.
Much has been made of the new Central Bank rules being a barrier to affordable home purchase, however, these rules are preventing would-be home owners from borrowing beyond their reach, to levels they cannot afford to repay.
Mortgage arrears
There are still large numbers of family homes in significant mortgage arrears who are vulnerable to repossession.
Continuing to work to solve this issue is important. In addition, continued attention will be needed for those who have entered mortgage restructuring arrangements to ensure that long-term sustainability.
Ensuring affordable housing availability will reduce the demand on social housing and protect the most vulnerable families. So affordability must be a cornerstone of any policy decision taken to address the housing crisis. We also need to consider the dramatic demographic changes in recent years when planning new builds. We must ask how suitable is our current housing stock for the future population?
The “new normal” of smaller household formation patterns will need to be considered carefully and accommodated. Our housing stock is a precious resource – we should encourage its efficient use.
Ensuring stability
We need to make provision for more and more renters, ensuring stability for those who choose to rent long-term, making good provisions for urban family living, helping to sustain low-income households.
Quality of accommodation must be central to all planning. “Decent Accommodation” needs to be defined and needs to be above the minimal standards traditionally used. Quality and “Decent Accommodation” needs to address existing as well as newly built sites.
The Housing Agency’s mission is to promote “sustainable communities”. Quality of communities is ultimately about matching housing provision to housing need, and to build communities with people at their core: not just buildings.
It means well-serviced communities with public services, employment opportunities, cultural opportunities. Communities that can accommodate a wide social and income mix.
In the past, we have seen a neglect of access to critical facilities such as public transport, schools, shops etc. In particular, urban and apartment-based housing supply needs to consider family life: creches and play areas for children, places to store bikes and prams, and shared allotments and gardening spaces.
In rural areas, transport initiatives will be critical to ensure the viability of rural housing and regional and national accessibility. Quality communities take time to plan and are all about ensuring sustainability well into the future.
Achieving these priorities around affordability, quality and building sustainable communities will need us to be brave enough to take bold steps – not a quick-fix.
Housing provision is about the long game – the next 100 years or more. We’ll need to show a steely nerve, think and act carefully and interdepartmentally.
Providing affordable, quality, sustainable housing is something which will need significant input from all concerned. John O’Connor is chief executive of the Housing Agency