A lot has happened over the last few days: standard government panic over housing, government deciding to pass Rent Pressure Zones across the entire country, and more. With so much going on, I figured I will try to address these one at a time.
However, 2 recent articles from the Irish Examiner caught my interest.
The articles basically say that Ireland is sitting on an enormous pool of household savings—an estimated €160 billion, according to recent figures released by the Society of Chartered Surveyors Ireland (SCSI). To be clear, I am still not sure how the article arrived at that figure but we can assume that there is a substantial amount of household savings. And with the government struggling to hit housing targets and homelessness continuing to increase, some experts are proposing that household savings be channelled into state-backed housing. Read more HERE or HERE.
While the idea may seem attractive on paper, I remain opposed to putting any more of Irish citizens’ private savings into state-backed housing initiatives under the current circumstances.
But before we begin, let us first briefly define what household savings actually means in this case.
Definition of Household Savings.
If you were like me before I carried out further research on this article, you could be thinking that “household savings” simply means money sitting in an account. But that is far from the truth and I am glad I was able to get some clarity to some extent.
In the broader economic and financial context, household savings can mean more than just money sitting in a bank account. It also refers to income that is not spent on consumption. This means money that is:
- Left in bank accounts (savings)
- Used to reduce debt (.e.g, mortgages)
- Invested in financial assets (e.g. stocks, pensions)
- Put into fixed assets (e.g. buying or upgrading property)
So, as you can see, household savings refers to other ways in which households save or invest money, rather than spending it on day-to-day expenses.
I felt that this explanation would be necessary, so that as the reader, you can properly evaluate everything else I would like to discuss next.
Why This Matters Now
The Central Statistics Office (CSO) also recently reported that Irish households saved €8.2 billion in Q1 2025 alone. That’s more than the entire annual state housing budget in 2024 (€5 billion).
It’s no wonder policymakers are looking at these savings as a potential funding well. The logic is simple – pool voluntary savings and use them to fund affordable and social housing, much like France has done successfully for over 200 years with their Livret A system.
But we are not France.
1. The Livret ‘A’ Model – Government Saving Scheme
France’s Livret A savings scheme is over 200 years old. It’s a trusted state-backed savings account offering modest returns while funding social infrastructure, particularly public housing. It offers citizens who contribute to this savings fund a modest but secure return. It also works in France because of consistent governance, accountability, and strong institutional trust.
I believe that trying out such a system in Ireland right now, without adapting it to the realities of Irish residents would be a mistake. Below are my reasons why:
i). POOR GOVERNMENT RESPONSE TO HOUSING CRISIS.
A). Ireland’s housing challenges aren’t just financial—they’re rooted in structural dysfunction.
Planning approval delays, red tape, poor public utility infrastructure (especially Irish Water), and general political indecision have all contributed to a situation where the state barely delivers 30,000 new homes per year – far short of its 50,000-home annual target.
B). There is a huge possibility that setting up such a fund would require a lot of new legislation, oversight mechanisms, and a strong public financial partner.
And with the indecisive track record of Irish politics in recent years, such a system could take years to set up effectively in the best-case scenario. Unfortunately, people need homes right now.
ii). TRUST DEFICIT
This one is a personal thought. But would you entrust your life savings to a government that:
- Completely decided that social housing was not a priority since the 2008 housing crisis? Read HERE.
- Approves planning between 12months to 3 years?
- Cannot guarantee that these funds would be properly managed or not become entangled in political bureaucracy?
- Misled the public during their pre-election bid, saying they would deliver 40,000 new homes in 2024? Even when they knew this figure was not credible?
I don’t know about you but I wouldn’t.
Now, I would admit that it is very easy for me to sit here and criticise because I am not a politician. And there is no evidence that I would fare any better if I had a real opportunity to get into office. However, we can admit that there is a clear trust deficit between the government and the public when it comes to housing delivery.
And until that is addressed, asking citizens to pour savings into a state-managed fund for housing projects is simply unrealistic and, frankly, unfair during these times.
2. The Apple €14.1 Billion Tax Windfall in Escrow – A Better Solution?
Ireland has at least €13 billion sitting in escrow as a result of the Apple tax ruling. This money, owed by a multinational corporation, presents a far less risky alternative to increasing housing supply in the short term – as opposed to using the hard-earned savings of Irish residents.
It’s not personal savings—it’s a corporate liability. The funds are already in escrow (meaning they are held by a trusted 3rd party) and could be accessed relatively quickly with the right political will.
Using the Apple funds would:
- Show that the state is not sacrificing existing revenue streams or imposing harsh measures on citizens such as additional taxes to get the funds.
- Provide a substantial capital boost for social and modular housing projects
- Generate massive public support. Many Irish citizens and residents already feel frustrated by the power of large tech corporations, so using that money to solve a social crisis would definitely curry favour with the public.
3. What If the Government Chooses a State-Backed Savings Model in the Future?
If the state insists on exploring a savings-based social housing model, then they should start small.
- Offer voluntary, capped contributions with guaranteed returns, and link the returns to inflation🤷🏾♂️.
- Create an independent, non-political management board, similar to the NTMA (National Treasury Management Agency).
- Ensure project transparency, and tie funding directly to housing delivery metrics.
This phased approach could reduce risk while testing the state’s capacity to deliver on promises and gaining the trust of its citizens.
Final Thoughts
Just like many others, I am also coming to terms with the fact that home ownership will continue to elude me for a long time. I’m not an economics, real estate or finance expert – just a guy behind a laptop and a keen interest in this whole crisis. So I highly doubt that my research and personal opinions would carry much weight.
However, I do know that we are in a housing supply crisis, not just a housing finance crisis. Throwing more money—especially private savings—at a structurally broken system won’t fix it. So before ”industry experts” convince the government to go after household savings, the state itself must prove that it can deliver results with the resources it already has.
- Start with the Apple money.
- Reduce planning delays.
- Polish water, transport and energy infrastructure where necessary.
Only then will a savings-based housing scheme become more than just another political gamble.
I would like to hear your views on the matter.
