The Irish Home Builders’ Association (IHBA), in the luanch of its new report, have expressed confidence that improving sentiment in the housing market would encourage higher residential construction activity than suggested in recent statistics.

In its report on housing for 2008, it outlines the factors affecting the housing market including stamp duty, the increase in affordability and also provides a forecast for housebuilding up until 2010. (Click PDF above to Read IHBA Report in Full)

Hubert Fitzpatrick, IHBA Director said: “current statistics on housing starts indicate that housing output could fall to as low as 37,000 units in 2009 compared with 45,000 this year.

Given that the medium term demand for houses is 60,000 units each year, this would result in supply falling far short of demand in key growth areas next year. Based on this medium term rate, supply and demand equilibrium would not return to the housing market until 2010.”