ICTU says that land for building is in the hands of a few who control the fate of many.
The Irish Congress of Trade Unions (ICTU) has long said that soaring house prices are one of the biggest problems facing the Irish economy. Addressing an Oireachtas Committee, Fergus Phelan of ICTU said that 70 per cent of the available building land in Dublin is owned by just eight individuals. These individuals are in control of the number of sites that come to the market at any one time. A crucial element controlling the price of housing is the cost of sites to build on.
Property economist Jerome Casey, who has investigated this issue, believes that the government is not doing enough. He says the government has had a carrot and stick approach with most of their policies being carrots. The only stick is the requirement for 20 per cent of development land to be designated for affordable and social housing. He believes that there needs to be more stick when it comes to housing but is not confident that the government will pursue this approach. He points out that many of the land holders are contributors to all political parties.
According to research, in 1990 the difference between the cost of building a house and the price achieved at sale was £31 per square foot. By 1998, this figure had increased to £91. ICTU says that most of that difference is due to the soaring price of sites in the hands of a few landowners.
An RTÉ News report broadcast on 15 March 2000. The reporter is Eilis Brennan.
