Cork’s housing market is in disarray with rising rents and limited supply. Kevin O’Neill asks sitting Government TDs if they did enough to prevent the crisis
Fine Gael TDs in Cork have conceded that there is a long way to go before the housing crisis is solved.
Since the current Government took to office, the housing market in Cork city and county has been in crisis. Housing stock has plummeted in the city centre, while rents have sky-rocketed in almost all parts of the county.
In April 2011 — the first month after the current Government took to office — there were 808 houses listed for rent in Cork city on property website Daft.ie. Five years later, the housing market has collapsed and demand increased, with just 108 properties listed in the city yesterday.
Large parts of Cork South Central are among the worst affected when it comes to spiralling rents, with Rochestown experiencing the sharpest jump in the entire county. Rent increased by 19.6% in just five years, with people paying an average of €1,008 per month.
Striking increases can also be seen in Douglas (15.4%) and Frankfield (18.4%), where the highest average rent in Cork is paid —an average of €1,055 per month.
Bishopstown, part of Cork South Central at the time of the 2011 General Election, increased by 18.9% to a monthly average of €1,017.
In other parts of the county, commuter towns like Glanmire (17.3%) and Ballincollig (11.6%) have also increased sharply, with the Cork East rail-adjacent towns, including Midleton and Carrigtwohill, also increasing and experiencing high demand for property.
Though increases haven’t been felt as acutely in West Cork, stock is particularly restricted in towns such as Clonakilty, Kinsale, and Skibbereen.
Minister for Agriculture Simon Coveney said that there is still a lot of work to do before the Government can claim to have solved the housing crisis.
The Cork South Central TD said: “I wouldn’t for one minute claim that this
Government has solved the housing crisis — there is still so much work to do.”
Mr Coveney said, though, that the wheels are in motion all over Cork to begin this work, noting huge capital investments in social housing and departmental staffing, which Fine Gael insist will also contribute to a reduction in rent in the private market as demand is met.
“In terms of Cork City and County — €124 million has been committed to build 1,349 social houses in Cork city by next year. €80.5m has been committed to build 1,217 in Cork county by the end of 2017, and some of these have started in Carrigaline already,” he said.
Jerry Buttimer TD said these capital projects are recognition of the need to take action in the housing market.
He said: “These projects are not being announced because there is an election coming. It is important for the Government to prioritise the needs of the people.”
Cork East TD Tom Barry, who was critical of the Government’s housing policy in the past, conceded that there is a lot to do to solve the crisis, and said that more could have been done over the last few years.
“Could we have done more? Of course we could have,” he said.
Speaking in the wake of the announcement of legislative changes to limit the ability of landlords to increase rent, Mr Barry claimed he was going to be forced to sell his own private property portfolio, which included 10 properties.
He said this stance hasn’t changed. “The property market hasn’t changed, so neither has my opinion. As a person who is involved in the market, I can say that a lot of work needs to be done to support it. People are losing hundreds of euro every month in many cases, with many people in negative equity and borrowing money from other income sources to meet payments.”
Mr Barry said he can see the logic in temporary rent freezes to curb private market increases, but insisted they will serve no purpose if the housing stock isn’t increased. “Freezing rents is not the best way to fix it. We need to build and build a lot. That is the only to solve demand issues and to cap rents fairly.”
Cork North West TD Áine Collins agreed that more could have been done, though said the Government’s focus was on fixing the economy.
Ballincollig, the heart of Ms Collins’ constituency, has experienced huge demand for property due to the presence of EMC, VMWare and other international companies drawing in huge numbers of young professionals.
She said the town is feeling pressure from the collapse of the construction market.
Ms Collins said, “From 2000 to 2007, 95,000 houses per year were being built in Ireland. This dropped to about 4,000 per year —we need 25,000 every year. This caused a huge backlog in the sector and now people can’t find homes.”
Ms Collins said that Fine Gael’s priority in Government was to focus on fixing the economy. She said that fixing services will come next.
“There is a lot to be done, but a lot is done already. The focus was to fix the economy before we could fix our services. But the policies are in place and these will come to fruition.”
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Increasing supply is the only solution
Build, build, build — that is the only way to solve the housing crisis, according to Cork’s Government TDs.
Limited supply all over Cork has fuelled rent increases as demand for property spikes. Reduced investment in the social housing market has also forced many to look to the private housing market, causing even greater pressure. Minister Simon Coveney said the collapse all but ended construction in Ireland overnight.
“Clearly the biggest problem in housing is that there hasn’t been enough built in the last eight years. There was a huge collapse almost overnight — we went from building 90,000 houses every year to 5,000 houses.”
Cork East TD Tom Barry said that a sudden surge in the number of people working in Cork is the reason for the pressure in the housing market. Additional supply is the only way to solve this, he said. “Until we increase supply, the problem is going to remain. The housing crisis wasn’t a crisis in the early years of this Government. 135,000 extra people are at work and people are returning home — all of this is increasing pressure on the market. It is a legacy of the boom and bust cycle.”
Mr Barry’s party colleague in Cork North West, Michael Creed, said that an ‘aggressive’ housing policy is the only way to ease demand in parts of the county. Mr Creed said that Ballincollig is under a particular strain both in social and private housing. “Anyone who represents Ballincollig must recognise the huge issue with housing in the area. This is both in terms of social housing and private property, which is not at an affordable level.”
He urged the Government to buy houses, as well as building them.
“We need a more aggressive approach. Void and derelict buildings on the streetscapes in smaller towns and villages — these could be bought, renovated, and returned to the market. This would contribute to the regeneration of these areas at an affordable level and ease pressure on the market.”
Labour TD Ciarán Lynch said that demand has caused the spike. “The high rents in Cork are a result of pent-up demand in the market.”
Mr Lynch’s party colleague in Cork East, Sean Sherlock, welcomed the allocation of some €80 million to Cork County Council for housing projects in recent weeks.
He said: “61 houses were announced for Midleton last week, which is significant. I look forward to the local authority continuing this project and others.”