Budget 2023 is around the corner.

And with the housing crisis worsening by the day, Cork Chamber has called on the Government to set up a new Vienna-style urban housing investment fund.

In its pre-Budget Submission, the Chamber suggests something similar to Vienna’s Wohnbauinitiative, an investment fund and subsidy scheme that provides finance, medium-term, low-interest loans, and low-cost building land to support new housing and apartment construction.

“The government needs to think differently on measures that can solve the housing crisis and mandating ISIF to set up an urban housing investment fund modelled on Vienna’s Wohnbauinitiative (WBI) would unlock affordable housing in cities and provide a steady return for the state,” said Cork Chamber CEO, Conor Healy.

“It is this kind of innovative approach that is required to unlock the high-density, high-quality housing that we need in Irish cities.”

The Chamber’s pre-budget submission also highlights changes needed in the government’s Croí Cónaithe scheme to enable development at the pace which is required.

‘’The scheme currently ignores the extensive viability gap still present in the Built-to-Rent (BTR) sector which is inhibiting development from progressing beyond the planning stages.

“A mechanism to underwrite the financing of new developments is needed to ensure the BTR sector delivers a diverse and affordable housing stock for more inclusive growth. In addition, the Croí Conaithe scheme that supports Build to Sell sees payment only made on completion which doesn’t overcome the initial financing barriers,’’ said Healy.

‘Anyone earning more pays more’

“Cost rental has worked well to date but future schemes are being jeopardised by inflation and increased costs of financing.” added President of Cork Chamber, Ronan Murray.

“Income thresholds need to be increased and rents tiered, so that schemes are financeable and affordable, and that anyone earning more, pays more.”

‘What is Home?’ mural by Asbestos, photographed by Dave Cremin