The Irish Government is to fast track the delivery of 30,000 new homes in urban centres across the country to stimulate the housing market in key areas of demand in the next four years.
Housing and Planning Minister Simon Coveney has announced that the planning process will be reformed in practical ways to ensure that property developments can be moved forward faster.
He has set out what he calls an ambitious target to double the annual level of residential construction to 25,000 homes and deliver 47,000 units of social housing in the period to 2021.
‘Current supply is half of what’s needed even before you factor in pent up demand. Lack of supply is driving up prices, increasing rents, which in turn influences homelessness. While at the same time making the best use of the existing housing stock and laying the foundations for a more vibrant and responsive private rented sector, we intend to kick start badly needed additional supply,’ Coveney said.
The 30,000 new homes will be built on major urban development sites with even more potential for a total of 60,000 homes in the long term. He explained that the sites are in some cases already serviced by major infrastructure but often need additional investment and co-ordination to get them started.
‘If we are to increase supply we must speed up the processes that lead to housing delivery and we must make it more efficient to deliver the homes that people need and where they need them. I have made a number of changes to the planning system to speed up the processes and reduce building costs, with more coming under fast track planning legislation,’ Coveney added.
Surveyors have welcomed the news. According to Claire Solon, president of the Society of Chartered Surveyors Ireland (SCSI), the fast tracking of residential housing schemes and the identification of significant land holdings for potential development are steps in the right direction.
But Solon pointed out that planning reforms must be backed up with the provision of increased manpower in local authorities to meet the potential increase in large scheme applications.
‘Availability and cost of land for development, VAT, site costs and the availability of labour to get developments started on site all need to be addressed,’ she added.
Solon explained that the availability development finance at affordable levels to fund these new homes will be needed for the policy to be a success and mortgage finance for buyers is also a concern.
‘It is debatable that there is enough finance out there to support the purchase of all these new homes. While a proportion no doubt will be targeted at the rental market, the homes that are made available for purchase must come in at a cost which will fit well within the Central Bank’s macro prudential rules policy,’ she added.
