On October 22 2024, the Business Post revealed that Ireland’s ‘Big Six’ affordable housing bodies now have €7bn worth of property under management and are planning more ambitious growth in the near future.
All six social and affordable housing providers are registered ”non-profit charities”. They include:
- Clúid
- Respond
- Tuath
- Oaklee Housing
- Circle Voluntary Housing Association and
- Co-operative Housing Ireland
The expansion of Approved Housing Bodies (AHBs) in Ireland has significant implications for potential modular home buyers – especially those seeking affordable housing.
However, there are both opportunities and potential challenges to consider.
Opportunities for Modular & Tiny Home Buyers
1. Increased Access to Affordable Housing
The role of AHBs is to focus on social and affordable housing. Though this does not seem like the case in today’s housing climate, this could still lead to more opportunities for lower-income households to secure homes.
As mentioned above, AHBs are planning even more ambitious growth in the near future, and this could also include investment in modular homes. Modular construction is known for its speed and cost-efficiency, and would be a profitable… *ahem* charitable consideration to any AHBs’ strategies to meet housing demand.
2. Possible Support for Newer Construction Methods
If AHBs adopt modular homes as part of their developments, this could result in a greater acceptance of modular homes within the broader housing market.
This could make more banks open to providing mortgages to modular home buyers.
Concerns for Modular & Tiny Home Buyers.
1. Potential Market Distortion.
The dominance of AHBs in the Irish affordable housing sector may create competition with private buyers. AHBs often receive state funding, tax benefits and other favorable terms, so their ability to buy properties outpaces private buyers, creating an uneven playing field.
As a result, private home buyers face inflated land prices, fewer options, and competition from AHBs for desirable plots.
2. Competition for Resources.
Construction of AHB-led projects can monopolise essential resources such as contractors, materials, and labor, in areas already facing shortages. This makes it harder for private developers to execute their projects, delaying private housing supply and thereby pushing prices up.
This has a roll-over effect on modular and tiny houses, and will result in fewer cheaper options for those looking to build or buy modular homes independently.
3. Demand-Supply Imbalance.
While AHB projects aim to address social and affordable housing needs, they don’t cater to middle-income households or individuals looking to purchase homes in the private market.
If the focus shifts disproportionately to social housing, the demand for private housing—especially among working professionals—remains unmet.
4. Limited Availability of Land.
Land is usually scarce in urban areas. With AHBs increasingly controlling significant property assets, there could be even less land available for private buyers interested in modular home developments. This could make it more challenging for individuals to find suitable land at reasonable prices to build modular homes.
As a result, many home buyers will have to move further away from their desired locations to be able to afford a home. To see Ireland’s most affordable locations for first time buyers, see HERE.
Final Words
In conclusion, while AHBs play a critical role in alleviating housing pressures, their non-profit mission in recent years leaves much to be desired. Despite this, their expansion presents both opportunities and challenges for potential modular home buyers in Ireland.
To learn more, we advise that you speak very closely with reputable modular and tiny home builders for more advice.
