herald

Monday 23 October 2017

Dublin not getting enough homes - despite permission for 23,000

Latest figures show many more homes could be built
Latest figures show many more homes could be built

Nearly 23,000 homes could be built across Dublin based on the number already granted planning permission.

New figures from the Department of the Environment show there is no shortage of permissions to build much-needed houses and apartments, but the homes are not being delivered.

The reasons include the high cost of building and the inability of builders to secure finance.

This is despite the crucial need for 6,000 new units to come on to the market every year simply to keep up with demand and allow people to get a foot on the property ladder.

The figures show the bulk of permitted new builds are in one of the country's fastest-growing areas, Fingal, and further reveal:

l There is planning permission in place for 27,002 homes across the four Dublin local authorities;

l Of these, 4,400 are under construction, meaning there is capacity for almost 23,000 new homes;

l The highest number of permissions is in Fingal, at 11,409;

l Next come Dun Laoghaire- Rathdown with 5,659, Dublin City with 5,315 and South Dublin with 4,639.

Levies

While the Government has taken some action to address the housing shortfall, including rebating levies for starter homes and reducing the number of units that must be available for social housing, the figures show that progress remains slow.

Last year, only 12,666 homes were completed nationwide. In Dublin, fewer than 3,000 were delivered.

"It's killing us that in broad terms the stock of planning permissions is increasing, but we're not seeing those permissions convert into starts," one source said.

"It's not a land issue, it's an economic issue. The delivery price of a home is in many cases higher than what the market can bear.

"Builders are building on the basis of deposits secured. What we're not seeing is building forward in any kind of speculative sense."

Nama plans to ramp up the delivery of starter homes in the capital, and intends building more than 6,100 across eight clusters by 2020.

Just under 1,100 are planned for Baldoyle/Clongriffin, 864 for Dun Laoghaire, 794 in Swords, 554 in Ballycullen/Knocklyon, 961 in Stepaside/Foxrock, 834 in Pelletstown/Ashtown, 399 in Kilternan and 433 in Castleknock/Diswellstown.

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