Analysis of Ireland’s Bubble Tied to Land-use Planning
Ireland passed its first major piece of land-use planning legislation in 1963, modelled on the UK’s Town and Country Planning Act of 1947. The intentions were laudable, to restrict the construction of unwelcome developments and to empower local authorities to take a more active role in shaping the built environment. There was no desire to screw up the residential housing market, but that is eventually what happened.
The Law of Unintended Consequences, began to impact from the mid-Seventies onwards as house prices in Dublin began to diverge from the national average. It now seems so natural that houses in Dublin should cost more than comparable dwellings elsewhere in the country that few people realise that, up to about 1975, there was little or no premium on house prices in the Dublin suburbs relative to provincial towns and cities.
Read more in The Independent