A lack of meaningful reform in the housing market is likely to force borrowers to take on more debt as they compete for a dwindling supply of properties and government policy drives up prices, it has been claimed.
Davy, the stockbroker, said that the government was reverting to inflationary policies that would boost developers’ profit margins and drive prices higher. Its policy analysis said that the absence of structural reform on planning and land supply continued to limit the availability of new homes while a lack of development finance remained a constraint for smaller builders.
“Our new analysis of housing demand and supply in Ireland reveals an even larger imbalance than we first thought,” Conall Mac Coille, chief economist at Davy, said. “Government policy seems