Two years' worth of new homes awaiting planning permission
70,000 Over A And From The An Housing Are Pleanála Waiting Bord For In Units Courts Decision
There is two years' worth of homes awaiting planning permission, an Oireachtas committee is to be told on Tuesday.
Representatives of the construction and property industries will be before the Oireachtas Housing Committee to discuss a proposed overhaul of planning legislation.
In its submission, The Irish Home Builders Association, a part of the Construction Industry Federation, will tell politicians that there are potentially 70,000 homes awaiting a decision by An Bord Pleanála. The association will also say that a judicial review of homes that have already been granted permission can add between €10,000 and €20,000 per unit to build costs.
Housing Minister Darragh O'Brien's bill looks to limit access to judicial reviews to those who have a material interest in a development.
The statement, which will be read by the IHBA's director Conor O'Connell, says that housing commencements, which were down 13% last year, will have fallen dramatically in the last 12 months when figures are compiled.
"We estimate that there are over 70,000 housing units waiting for a decision in An Bord Pleanála and in the courts, nearly two years' supply of homes.
"The old expression that “time is money” has never been more appropriate in the current economic environment as increases in the cost of materials, the rising interest rates, and other factors mean that the extraordinarily long delays being currently experienced in the planning and legal system results in more costs being added to a new home.
"These are adding unnecessary delays to our younger generations securing their new homes. Commencements have declined by 13% last year and we expect that planning permissions will see a dramatic decline over the last 12 months."
Mr O'Connell will tell the committee that while there are many planning permissions already granted for homes, most in urban areas are for apartments. He will say apartments have "always been a challenge to deliver due to their high delivery costs and it will be difficult to see many commence in 2023".
He will say government schemes such as Project Tosaigh and the Croí Conaithe cities scheme may yield results in terms of apartment commencements in the latter half of 2023 but demand for traditional housing units remains strong and is the preference for most people.
Mr O'Connell will tell the committee that house builders trying to deliver homes are "concerned they may run out of permissions in areas of high demand in late 2023 and that the resourcing in the planning system is "at a critical juncture" and will argue for stronger safeguards around planning objections.
"We have seen objections based on the claim from individuals that their houses may be devalued. We have seen objections to housing from organisations or individuals living several hundred kilometres away from the site, we have seen politicians objecting to housing who, at the same time, are calling for more housing. This simply cannot continue if we are serious about an inclusive and harmonious society where the provision of housing is facilitated by the state with appropriate legislation and procedures."
Representatives of Property Industry Ireland, the Ibec group for the construction and property sectors, will tell the committee that finance has become an issue for builders and potential homebuyers.
"In the delivery of new homes, homebuilders face many challenges. At present, the growth in input cost inflation is impacting on viability and the new home pipeline. Financing is now a particular constraint. Interest rate rises have had a major impact. There are supports for owner-occupiers, but a critical challenge will be in the delivery of homes to rent. Uncertainty can also play a key role in homebuilders decision-making."