Taoiseach insists housing fall-off expected after record levy waiver impact
Last month, there were only 1,356 commencement notices lodged - the lowest total recorded since 2020 when the Covid-19 pandemic was at its height.
The Department of Housing confirmed that the total number of housing commencements to date for 2025 was 6,325.
That contrasts to a whopping 34,581 by June 2024.
The Taoiseach insisted commentators are not comparing like-with-like in terms of the housing commencement figures.
"I don't think that is fair - you have to look at the context," he said.
"Last year was a record year of 33,000 (housing commencements) because of the waiving of the development levies.
"That is the context in which one must look at this. We expected a fall off this year given the record number that came in last year.
"The year before was 15,000 - so last year 33,000. The first quarter of this year, completions are up - and that is important."
The Taoiseach added that measures adopted by the Government have also yet to impact on the housing market.
"Also we have taken a significant number of measures that will lay (important) foundational steps for growth into the future both in terms of commencements and completions,' he said.
"There are thousands and thousands of houses now in the pipeline.
"We do need to unblock some of those and that is why the national development plan is important in enabling the unblocking of some projects that are already about to happen or in the pipeline itself.
"We are focused really in terms of the initiatives we have taken to attract further private sector investment into the construction industry which is critical but also maintaining public sector investment."
Mr Martin insisted the Government anticipated a temporary fall-off in commencement numbers.
"When the development levy waiver ended we anticipated this fall off given the extraordinary number of commencements over the past two years,' he said.
"Between 2023 and 2024 you are looking at close to 50,000 commencements. So if we can get those completed in addition to those already in the pipeline, I think you will have a significant number of houses completed.
"What will be key next year and in the years ahead will be getting more private sector construction - particularly in apartments - we need to really increase the level of apartment building.
"There is plenty of planning permission out there. The planning framework will allow councils to zone much more land which is also going to be critical for house building going into the future."
Mr Martin insisted he was concerned about how Ireland increased housing delivery.
"I am concerned about how we get from 33,000 to 50,000. That is my focus,' he said.
"We have a lot of commencements. We have a lot of planning permissions granted. The issue is how we turn those into buildings."
However, Sinn Féin housing spokesperson, Eoin Ó Broin, said the latest figures were a matter of great concern.
He warned that, with the exception of the first year of the Covid-19 pandemic, the housing commencement figures have not been this poor since 2016.
"This has been the trend now over the last three or four quarters. These are historic low commencements over the past decade,' he said.
Mr Ó Broin warned that, with the falling level of housing commencements, there will continue to be upward pressure on house prices and supply nationwide.
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