Central Bank reveals how much it will cost Government to end housing crisis [Video]

The cost of doing business in Ireland will rise, “ultimately damaging our global competitiveness” if the Government increase funding to end the housing crisis, according to a Central Bank statistician.

Around 52,000 new homes are needed annually for the next 25 years to protect living standards, the Central Bank has said.

An additional €6.5–€7bn will be needed each year to finance their construction, effectively double the €6.5bn the Government currently spends.

The high estimate is due to pent-up demand and an increased housing need for “our growing population over the coming decades”, the Central Bank’s latest quarterly bulletin said.

Director of Economics and Statistics Robert Kelly warned: “Housing supply is unable to meet our country’s needs which is limiting the sustainable growth of living standards.”

He added: “We have calculated the significant economic costs of policy inaction prolonging the imbalance between housing demand and supply.

“These will result in a higher cost of living…