County Tipperary Chamber say they are concerned about inflation in the housing sector
However, they welcome the Housing for All update
Tipperary Chamber has welcomed the Housing for All update but says they are concerned about the cost of inflation.
County Tipperary Chamber CEO Michelle Aylward said they are glad to see the Government prioritising housing and acknowledged the achievements of the Housing for All Strategy.
However, she also said that inflation would drive up the cost of delivering the houses the Government had promised.
“Unadjusted for inflation, Government plans to spend €2 Billion on housing construction by 2025 (up from €500m) and expects the private sector to finance €10 Billion in spending (up from €6 Billion in 2025).
“We are very concerned about how this level of funding can be supplied to the market,” said Ms Aylward.
She also said that a combination of the conflict in Ukraine and decades of inflation in the housing sector is driving up the cost of timber and steel.
“With rising costs and considerable volatility in the commodities markets likely to persist, this will undermine the commercial viability of many projects that have yet to commence, and many that are underway but have yet to be completed said Ms Alyward.
Ms Aylward says housing is the biggest expense for workers, driving up wage claims and reducing Ireland’s competitiveness.
“This concentrates our potential for growth into the internationally traded sector and leaves us vulnerable to geopolitical risk,” said Ms Aylward.