The current housing dilemma in Ireland by Thomas Murphy CEO, MIL.

As a practicing Architect in Ireland for over 50 years, I wish to point out some of the flaws and to suggest some solutions to the current housing problem. The Society of Irish Surveyors informs us that in terms of the housing costs one should differentiate between Hard Costs, which are actual building costs of premises 48%, and Soft Costs, which encapsulate the remaining 52%. The latter consists of a vast array of charges imposed on the unsuspecting purchasers.

HARD COSTS (BUILDING COSTS) COMPRISE THE FOLLOWING:

• Substructure, floors, roofs, stairs, frame, external walls, and structure.
• Internal walls, internal doors, internal balustrades, and internal sub-division.
• Windows and external doors, wall finishes externally, and the external enclosure.
• Roof Coverings, roof glazing, rainwater disposal, and roof enclosure.
• Wall finishes internally, floor finishes, ceiling finishes, painting and Decoration, fittings and equipment, sanitary fittings, and Internal finishes/fittings.
• Mechanical services, electrical services, lift installation, Builder’s work, and Services.
• Preliminaries and contingencies.

These hard costs for total building and external works amount to 48%.

SOFT COSTS:

• V.A.T.
• Land costs and tax.
• Professional fees.
• Statutory levies.
• Utility connections.
• Contingency.
• Marketing/risk.
• Finance and sales fees.

These soft costs equate to 52%.

Irish housing shows C. 500,000 youth searching for affordable dwellings. In voting terms, where parents are also affected, this amounts to c. 1.5 million voters. Can any government take the risk of not finding a cure to deflect this disaster? Yet the only cure, placidly dished out, is a handful of Social/Affordable builds, billed to the nation at very exorbitant market costs. Government fees; VAT at 13.5% and 23% [the U.K. does not charge this tax on housing]; Council planning charges, levies, and ancillary charges. The latter includes a premium costing per unit, circa €6,000 for Irish Water. C. €712 for E.S.B., €200 for Telecoms, etc., not forgetting land taxes. These charges combined with services charges can add up to more than 33% of the overall sums. A huge cost for first-time buyers. This expenditure is then followed by perennial ancillary costs for such services, property tax, and more. We are told that some of these soft costs are reduced or waived for social housing although they are not exempt from affordable housing units which are sold onwards. There is also an argument for making all Social & Affordable Housing into social and retaining ownership in the local authority of the housing body.

LAND COSTS:

Land represents the main security banks they have had to leverage the fate of the Irish Banking system and that of big developers. Had the land been re-evaluated in more realistic terms, after the boom-bust, its prices might have reached less extortionate heights and facilitated re-development under different terms. It is indeed free for all when lands are traded and flipped and costs increase incrementally. Council rezoning, in Ireland, offers little or no control over the add-on value of the land. This element creates not only millionaire landowners but also cartels of landowners and Developers in the long term. In other parts of Europe, the price of land is capped. In Ireland however, where land could possibly be price capped at 2 or 3 times the cost of agricultural land value to facilitate Social and Affordable Housing, such a solution represents a "Constitutional" issue. Although the state could find a way around this issue so as to facilitate the provision of Council lands, free of charge, for Social/Affordable Housing. Unfortunately, spurious correlations are made regarding the input of foreign multi-nationals/Vulture funds/ Cuckoo funds and the Irish housing crisis, whereas they were invited to clean up the Banking mess-up. The above costs in cumulative terms are hovering around 50% of the purchase price.

BUILDING COSTS:

• The inordinate cartel mentality limits open competition. The opportunity to quote for works should be open to all Developers.
• The cost of "Brexit" supplies. Recent cost increases for bricks, timber, and steel for example, due to Brexit could and should be alleviated totally by changing suppliers. The EU facilitates exports to all parts of Europe, including Ireland.
• The dated planning solutions: The real culprit, resulting from 60’s style to most high rise developments.

The infamous central core solution inclusive of off-corridor style [most units should now be dual aspect] single aspect units set out in an odorous, invasive, noisy, cramped solution with single access fire escape stairs. The latter apparently results from the Irish representative’s yearly excursion to England to get acquainted with English Planning laws and Fire requirements for the purpose of updating their own regulations. Single fire escape high-rise living units have been green-lighted since the Birmingham Tower blocks of the ’60s.

The present high-rise solutions are still built over several levels of underground car parking. They are slow to construct and very expensive. Do our Youth deserve to be penalized financially?

HOUSING DESIGNS NEED INNOVATION:

A revolution that will enhance the living environment and the lives of future generations. The following is one example of how this may be achieved. A design solution to Housing – Murphy Inventions Proposal: Low, medium, and high rise - high density, quality affordable and sustainable passive housing. Precast for speed and prefinished for efficiency, cost-effective, dual aspect living with alternative escape routes; barrier-free, interchangeable, and extendable; noise-free, comfortable units with their own external entrances and ventilated with no odors; fire safety and sustainably “A” rated. The proposal features verdant open spaces over half-sunken naturally aerated car parking as required, balconies to suit both facades; In-built services, and utility pods. These robust designs are intelligently modular. It facilitates simple stacking of the various units one over the other – Studios (back to back), Two Beds, Duplexes (3, 4, and 5 bedrooms), Single units, and Penthouses. Roof areas support terrace facilities.

Higher densities in planning, faster construction, reduced costs, and increased efficiencies.

SUMMARY – THE SOLUTION:

• Better use of Land.
• Soft costs are reduced for the end-users of Private Housing.
• Reduced land levies through enhanced planning and rezoning.
• Constitutional changes, where necessary, for the State to require Land for housing.
• Innovative design.

For further information and contact details, please visit our website: https://www.murphyinventions.com/housing