Developer O’Flynn said he does not want tax breaks to build homes

Housing Crisis: Developer Calls for Urgent Action

Property developer Michael O’Flynn has called for immediate action to address Ireland’s housing crisis, emphasizing the need for practical solutions rather than temporary tax breaks. Speaking at an event hosted by Property Industry Ireland, O’Flynn stated his opposition to tax incentives for developers, saying, “I don’t want tax breaks, and I want to make that clear, I just want a business that’s viable, that we can go to a bank, we can fund it, we can make a profit.”

O’Flynn pinpointed several key challenges hindering the construction of new homes. He cited the limited availability of zoned land that is adequately serviced and the current planning system’s inefficiencies. He observed that large-scale residential developments are facing significant delays in navigating the local authority system, stating, “We need emergency measures across all the areas if we are going to try and catch up.”

Criticising the government’s inaction on the recommendations outlined in the Housing Commission report published last year, O’Flynn lamented, “we are failing a generation of young people”. The report, wich included contributions from several industry experts like Dermot O’Leary, chief economist at Goodbody, and Kathryn Meghen, chief executive of the Royal Institute of the Architects of Ireland, outlined a comprehensive roadmap for addressing the housing crisis.

O’Flynn expressed his disappointment that the report hasn’t been adequately addressed, stating, “it didn’t need to be put on a shelf somewhere or sent back somewhere”. He acknowledged Minister for Housing james Browne’s engagement with the commission, but stressed the need for concrete action to implement the report’s recommendations.

O’Flynn further suggested enhanced transparency within the development industry, proposing that developers disclose the cost of building homes to dispel misconceptions surrounding housing supply. He stated, “In order to take the mystery away from housing supply; we should be totally transparent about what it costs to build”.

In a related development, Property Industry Ireland (PII) released a white paper highlighting critical housing policy priorities for the government.PII director David Howard expressed deep concern regarding the potential impact of the proposed zoned/land value sharing legislation outlined in the government’s program for government, stating it is “already negatively impacting transactional activity in the development land market”. He called for a pause in legislative progress on this issue,arguing it is hindering housebuilders’ ability to acquire early-stage development sites.

The housing crisis continues to be a pressing issue in Ireland, demanding innovative solutions and a concerted effort from all stakeholders.

What measures, beyond those mentioned, could be implemented to address the lack of zoned land available for advancement?

Housing Crisis: A Conversation with Michael O’Flynn, Property Developer and Industry Stalwart

In a recent engagement with Archyde, prominent property developer Michael O’Flynn shared his insights on IrelandS housing crisis and potential solutions. with over three decades of experience,O’Flynn’s perspective is both informed and impassioned. Join us as we delve into this critical issue and explore the path forward.

Archyde: Thank you for joining us today, Michael. You’ve been vocal about the need for immediate action to address the housing crisis. What are the most pressing challenges you’re seeing?

Michael O’Flynn: Thanks for having me. Let me start by saying,this is a complex issue,but at its core,it’s about supply. We’re not building enough homes to meet demand. The biggest challenges are twofold – firstly, there’s a lack of zoned, serviced land available for development. Secondly, our planning system is outdated and inefficient, leading to significant delays in getting large-scale residential projects off the ground.

Archyde: You’ve criticized the government’s inaction on the Housing Commission report. Why is implementing its recommendations so critical, and what more can they do?

O’Flynn: The Housing Commission report presented a thorough roadmap to tackle this crisis. We need decisive action on its recommendations, not just more talk. we’re failing a generation of young people in not addressing this. Minister Browne has engaged with the commission, but we need to see concrete action, like streamlining the planning process and increasing the supply of affordable housing through tax incentives for Stamp Duty and VAT.

Archyde: You’ve mentioned the need for clarity within the development industry. Can you elaborate on this?

O’Flynn: Transparency would help dispel misconceptions about housing supply and costs. Developers should openly share the cost breakdown of building homes. It’s not a profit-driven issue; it’s about ensuring viability. If we’re obvious about costs,we can reassure people that we’re not profiting excessively and that the real challenge is the high cost of construction and compliance.

Archyde: Property Industry Ireland has raised concerns about proposed zoned/land value sharing legislation. How might this impact the market?

O’Flynn: The proposed changes could significantly hinder housebuilders’ ability to acquire early-stage development sites, which are key to providing timely housing supply. We’re urging the government to pause and reconsider this, ensuring it doesn’t inadvertently make the crisis worse.

Archyde: given your extensive experience, what gives you hope that this crisis can be resolved?

O’Flynn: I remain hopeful because there’s a broad consensus that we need urgent action. We have the blueprint in the Housing Commission report. Now, we need everyone – industry, government, and society at large – to pull together and make it happen. If we do that,I’ve no doubt we can reverse this crisis.

Looking Ahead

The conversation with Michael O’Flynn underscores the urgent need for action to address Ireland’s housing crisis. As stakeholders continue to engage in dialog, let’s hope concrete solutions emerge, ensuring a luminous future for all. We’d love to hear your thoughts on this issue. Join the conversation in the comments below.