Planning permissions granted up by more than 25pc

THE number of planning permissions granted last year was up by more than a quarter to almost 21,000 homes – but experts say it needs to hike further again just to meet soaring housing demand.

Permission was granted for almost 15,500 houses last year but experts say it is still way below the 30,000 needed as the population grows rapidly.

The number of planning permissions has increased every year since a low of almost 5,400 houses in 2012 but is significantly lower than the peak of more than 75,500 in 2005.

Last year planning approval was granted for 20,776 ‘dwelling units’ – which includes apartments and houses – up by 27% on 2016, figures released by the Central Statistics Office yesterday show. The increase brings the highest number of permissions since 2009 but experts warn giving the goahead to build is no guarantee of a supply of new homes.

Property Industry Ireland director Dr David Duffy said: ‘On the face of it this is good news, yes. As a headline number 27% is quite strong so that would be positive.

‘The key thing that’s going to help resolve issues is the delivery of houses in developments. So it’s how much those are growing by that counts.

‘It’s good to see an increase of this level and interestingly the increase in apartments is stronger but even with the increase the total number there is planning permission for is still below the annual requirement which is in the order of 30,000 new households each year being formed each year.

‘This is saying 15,440, which is about half, so we do need to see further increases in supplies. Viability of construction still remains an issue.

‘It’s in the right direction and we’re seeing an increase in the multi-development houses. But again, that’s low given that that’s going to be the main solution.

‘So we still need to see a further increase in multi-development houses.

He said more multi-housing developments and apartments were going to be the main issue to address.

And Savills estate agents’ director of research Dr John McCartney said: ‘Planning permissions are a leading indicator of housing construction but historically they aren’t that reliable.

‘But if they’re going up it’s a good thing shows that someone has it in mind to build residential property and you would expect it would be a good indicator in the current market.

‘The increase of 27% is in line with the increase we’ve seen in existing completions and the commencement notices which is a stronger indicator.

‘It also shows that the current pick-up in housing development is unlikely to be a flash in the pan.

‘It is good news and the signs are that supply is slowly, gradually, continuing to build and the conditions are improving for developers and development.’