Summary of meeting

The Central Bank held the second Civil Society Roundtable of 2024 with representatives from a range of civil society organisations on Wednesday 16 October 2024. The meeting focused on two key themes:

The meeting was chaired by Deputy Governor Sharon Donnery and was attended by Deputy Governor Derville Rowland and Martin O'Brien, Head of Division, Irish Economic Analysis.  

The attending civil society organisations work across a range of areas including social justice, housing, charities, and the rights of older people. The discussion was held under Chatham House rules and this is reflected in the summary of the discussion below.

Civil Society Roundtable slides (PDF 1.82MB)

Part one: Economic Policy in the Irish Housing Market. 

Deputy Governor Donnery opened the meeting and thanked the attendees for their time. Martin O’Brien then discussed economic policy in the Irish Housing market. Using the presentation, he explained that whilst housing supply has risen rapidly in recent years, there is a decade of excess demand and growing demand pressures. He discussed the economic and societal issues surrounding housing in Ireland, the construction sector. Citing the recent Quarterly Bulletin (PDF 3.03MB) and accompanying Signed Article (PDF 1.09MB), he elaborated on how policy action can support the delivery of more homes. Mr O’Brien then discussed the economic situation for Irish households. He noted that incomes and savings had grown, inflation had eased and purchasing power was now at pre-pandemic levels, however he acknowledged that the economic situation experienced differently by all households.

The discussion touched on a range of issues, which can be broadly summarised as follows:

Housing Policy

Attendees were broadly receptive of the Central Bank’s work in this area. One contributor noted that it is often difficult to trust policy that aims to reduce house prices, due to the amount of wealth in Ireland held in properties. One participant said that Ireland is lagging behind in modern methods of construction. It was also noted that the Central Bank’s recommendation on a more efficient planning process may be ‘tricky’ to implement in practise. One participant highlighted how the creation of a new EU Commissioner for Housing and Energy provided bodies like the Central Bank with a tremendous opportunity. Constraints in the construction sector and social housing were also discussed.

Financing

One attendee asked where the financing for housing will come from. It was explained that financing will come from variety of sources including state bank, nonbanks, and private investors. This diversity of funding may make it more sustainable, though will come with its own challenges. Access to finance in the form of mortgages remains an issue for many in Ireland. One participant also mentioned that UK lenders offer 40 year mortgages, which could be useful in the Irish market. 

Vulnerable People

A number of attendees noted that housing is a huge concern for vulnerable people. However access to new housing is not a primary focus for older people who hold a lot of wealth in their homes but often can’t access finance such as bridging loans. Furthermore older people tend to be impacted more by problems with existing homes, as they tend to own older houses, and therefore policies should be brought forward to improve the existing stock of housing. Many older people’s income is derived from the state pension and while it has increased, it may not be enough.

Cost of Living