Sharp Decline in Irish Planning Permissions Raises Concerns for Housing Supply
Recent data from the Central Statistics Office (CSO) reveals a worrying trend in Ireland’s housing sector, with a notable decline in planning permissions granted for new homes in 2024. This downturn is particularly significant in the context of the country’s ongoing housing challenges.
The CSO figures indicate that planning permissions for apartments plummeted by nearly 39% last year compared to 2023. This sharp decrease is mirrored in the approvals for houses, which saw a reduction of 2.7%. Overall, the total number of new homes approved annually fell by 21.4% in 2024, a stark contrast to the 20.6% increase observed in 2023.
These statistics are crucial as they provide insight into future construction activities, especially after housing completions failed to meet the Government’s targets last year. The decline in planning permissions suggests a potential slowdown in housing delivery, which could exacerbate the existing housing shortage.
The situation is particularly acute in Dublin, where planning permissions for apartments fell by 55.7% across the city’s four local authorities. Furthermore, there was a 46% decline in the number of Strategic Housing Developments (SHD) dwelling units approved. These figures underscore the challenges facing urban areas in meeting housing demand.
The final quarter of 2024 saw a significant drop in planning permissions, with the total number of dwellings approved down by 38% compared to the same period in 2023. Specifically, apartment units experienced a 52% decrease in planning permissions, while house permissions fell by 21%.
David Howard, Director of Property Industry Ireland, expressed concern over these trends, emphasising the implications for Ireland’s ability to meet its annual housing requirements. He highlighted the importance of extending the validity of existing permissions that are nearing expiration and addressing key investment concerns in the apartment sector. Howard also stressed the need for a prompt review and implementation of the National Planning Framework in local Development Plans to make more land available for new homes.
This decline in planning permissions poses significant challenges for Ireland’s housing market. It highlights the urgent need for strategic interventions to ensure that housing supply meets demand, particularly in urban areas where the pressure is most acute. As the country grapples with these issues, the focus will likely shift towards policy adjustments and innovative solutions to stimulate housing development and address the underlying factors contributing to the slowdown in planning approvals.
