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'Don't be naïve': New proposals won't reduce house prices, experts warn

Experts have warned that a property developer's proposal to increase the density of housing will ...
Mairead Maguire
Mairead Maguire

15.25 4 Aug 2022


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'Don't be naïve': New proposal...

'Don't be naïve': New proposals won't reduce house prices, experts warn

Mairead Maguire
Mairead Maguire

15.25 4 Aug 2022


Share this article


Experts have warned that a property developer's proposal to increase the density of housing will not solve the housing crisis.

Developer Glenveagh Properties believes reducing garden sizes and creating high density, low-rise suburban developments would help "fix the housing crisis".

It has suggested a reduction in back door to back door distance guidelines from 22 metres to 16.

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"Naïve"

Assistant Professor of Social Policy at Maynooth University, Dr Rory Hearne, has questioned Glenveagh's motives.

Speaking to Newstalk, he said: "I think the idea in principle is something positive, but will it actually lead to reduced house prices and increase supply? I really don't think so."

He said it would "naive" to believe private developers would prioritise reducing house prices.

"We have seen with the development of apartments that are built to rent, the reduction in apartment sizes and standards there did not lead to a reduction in apartment prices."

"It actually led to a significant increase in prices."

"Do turkeys vote for Christmas?"

Under the proposed regulations, developers could potentially increase the number of units on their land and increase their income.

"In reality, what is a private developer going to actually do? Will they pass the cost reduction onto the home buyers?"

"Do turkeys vote for Christmas?"

"We have to ask the fundamental question: Why are we allowing our housing system to be dependent on the delivery of housing by private developers who are in this to make a profit?"

State intervention

Hearne said that, while increasing density and creating '15-minute cities' should be a goal, we must be "very cautious that this is not just another proposal whereby private developers increase their profits and do not reduce house prices".

"Ultimately the reduction in house prices is going to come from when we can ensure that there is affordable land available and the state increases its role in the delivery of housing."

He said the state needs to regulate the market better and give land to affordable housing providers.

Garden space

Founder of Grow it Yourself Michael Kelly told Newstalk that the proposed changes will have other negative affects too.

"Even apart from the softer benefits that people get from being out in their garden and growing their own food, there's also [the question of] are we coming to a point where we need to be growing more of our own food."

"I find it very unlikely that house prices will go down. I think they'll stay the same and people will end up with less garden space to enjoy and to have as productive food-growing spaces as well."

Food shortage

Kelly believes that there is not only a housing crisis, but a food shortage crisis, and that people need to hang on to the space they have.

"Gardens are such an important space for people to be able to decompress and be in touch with nature."

"We mess with that at our peril. We don't want to create these sprawling suburban jungles where there's just rows after rows of houses with no back gardens."

Reporting from Michael Dooley


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