IRISH REITS: EXACERBATING THE HOUSING CRISIS?
1st June 2020
Our main preoccupation here in Ireland, before the Covid 19 lockdown, was the housing crisis. The huge gains made by Sinn Fein in the general election in February, at the expense of the two traditionally powerful political parties, Fianna Fail and Fine Gael, were largely attributed to younger voters registering their discontent at the lack of progress in building affordable housing.
FF and FG now look like they will form the next government, with the help of the Green Party. All concerned know that if significant progress is not made regarding the housing issue in the next few years, then the political landscape will change for sure, to their detriment. When the Covid 19 obsession fades, housing will then be back as the number one item on the agenda.
It is interesting therefore to re-read an article that was written by Dermot Desmond in the Irish Times back on March 7th 2020, on how he would solve our housing crisis. His proposed solution is surprisingly 'left-wing' for someone who is one of our most successful businessmen.
And how do FF and FG pull the rug out from under Sinn Fein? In the time honoured political tradition of stealing their policies, on the most critical issue that we are likely to face post the Covid crisis. With one of our foremost captains of industry and finance now advocating massive state intervention, it appears likely that we can expect some radical changes.
All of which could negatively impact the three remaining Irish Real Estate Investment Trusts (REITs), Hibernia, Irish Residential and Yew Grove, following the takeover of Green REIT last year.
Mr Desmond has proposed the following solution:-
READ THE FULL ARTICLE IN THE MEMBER’S AREA