Housing Crisis: Obstacles to Large-Scale Development in Ireland
Almost 30,000 units in large-scale housing developments are either under appeal to An Bord Pleanála or subject to judicial review, according to recent claims.
Industry Challenges
The Construction Industry Federation (CIF), representing the construction sector, estimates that more than 16,000 units are subject to objections from planning authorities, while an additional 13,000 are undergoing judicial review. These figures encompass developments exceeding 100 units each, excluding smaller projects.
CIF Director of Housing and Planning, Conor O’Connell, dismissed concerns about insufficient construction workers as “nonsense.” He noted that the industry has doubled its housebuilding capacity twice since 2016, achieving remarkable growth.
Government Targets and Reality
Despite these efforts, the number of new homes built fell by nearly 7% in 2023, reaching just over 30,000. This figure significantly misses Government targets of 40,000 units annually. CIF has presented a detailed plan to accelerate housebuilding to surpass 50,000 units per year.
CIF Solutions
CIF recommends increasing the “headroom” of zoned land from 25% to 50% to better align with estimated housing needs. For example, local authorities currently zone 1,250 units for every 1,000 homes required; CIF suggests zoning 1,500 units instead.
The federation also advocates for Uisce Éireann to secure €500 million annually for essential infrastructure improvements, enabling more housing projects to commence.
Infrastructure Blockages
Infrastructure remains a critical bottleneck. Connections to water, waste water, roads, electricity, and public transport often face delays. O’Connell highlighted these issues, emphasizing the need for streamlined processes to expedite housing delivery.
Rental Caps and International Investment
Current rental caps in urban areas, limiting annual increases to 2%, deter international investment. CIF proposes revising these caps to attract foreign funding essential for achieving housing targets.
O’Connell stressed the need for greater rental supply to reduce housing affordability pressures.
Programme for Government
CIF welcomed the commitment in the programme for government to increase zoned and serviced land in line with the revised National Planning Framework, scheduled for July 2024. These changes aim to provide a more robust foundation for future housing developments.
Conclusion
While significant progress has been made in recent years, substantial challenges remain. The Construction Industry Federation’s recommendations offer a roadmap towards addressing these obstacles and meeting ambitious housing targets. Achieving this requires collaboration between government, industry, and investors.
Actionable Next Steps
As stakeholders work towards these goals, public support remains crucial. By staying informed and engaged, citizens can play a vital role in shaping policies that benefit communities nationwide.
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