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Irish Independent
6 days ago
- Business
- Irish Independent
Taoiseach insists housing fall-off expected after record levy waiver impact
The remarks came as the latest housing figures revealed a record low in housing commencement notices for June. 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.
Irish Independent
6 days ago
- Business
- Irish Independent
‘Historic low' – just 6,325 house commencement notices this year, the lowest rate since lockdown
The Department of Housing says the total number of commencements in the year to date is 6,325. At the same point last year, the figure stood at 34,581, but this was artificially inflated because developers were rushing to avail of a waiver on water-connection charges and development levies. A fairer comparison would be with the first six months of 2023, when 15,561 commencement notices were filed, or with January to June 2022, when 14,149 housing starts were notified by builders. The Department of Housing figures are just the latest indictor that there has been a slowdown in housing construction this year. Eoin Ó Broin, the Sinn Féin housing spokesman, said that other than the Covid year of 2020, commencement rates have not been this low since 2016. 'That has been the trend now over the last three or four quarters. These are historic low commencements over the last decade,' he said. 'What that means is not only is the Government not going to reach its target of building 41,000 homes this year, there is a real possibility that both this year and next year the total number of homes could be fewer than last year. And that is obviously very concerning.' Mr Ó Broin said that shortfalls in housing output are on the public sector side, with social and affordable homes way behind target. But the Government is also lagging behind on new homes to buy on the private market. 'I am talking to a lot of builder/developers, particularly small to medium-sized around the country, and they are really struggling to get finance, planning permissions, utility connections, site servicing. So what this set of data tells us is that for both this year – but crucially for next year – our housing output is on a downward trajectory. 'And that means house prices and rents will continue to rise.' Due to the waivers last year, a total of over 60,000 commencement notices were filed. Ministers would have been hoping that the focus of the construction industry had turned to completing those houses, which must be finished by December 2026 if the builders are to avail of the waivers. ADVERTISEMENT The Central Statistics Office will have new figures on how many houses were completed in the second quarter of 2025 next Thursday. But the figure for the first quarter was 5,938 dwelling completions, which was only up 2pc on the same period last year. The Government will need to see a considerable improvement in the second-quarter figures if it is to have any chance of getting close to its declared target of 41,000 completed houses this year. Housing Minister James Browne has already conceded that the official aim is 'not realistic'. Several independent bodies, such as the Central Bank and the ESRI, are predicting that output will be somewhere between 32,000 and 34,000. One positive that the Government could take from June's commencement figures is that 509 of the notices were for apartments, a sector that it is trying to revive. This brings the total number of apartment commencements for the year up to 2,208, which is just over one-third of the total.
The Journal
16-07-2025
- Business
- The Journal
Here's how much the government says tiny apartments will save
HOW FAR WILL the government's overhaul of regulations for building apartments go in its bid to reduce costs and entice developers? As announced last week , Housing Minister James Browne wants to boost construction in the sector by tweaking requirements for new apartments, in response to warnings about flagging development . They would pare back the minimum apartment size to approximately the size of two and a half parking spaces and scrap rules on the maximum number of one-bedroom and studio apartments in buildings. Fewer windows and balconies would also be required, while a requirement to have indoor communal or cultural facilities has been scrapped. The proposed changes, contained in the Planning Design Standards for Apartments, Guidelines for Planning Authorities (2025) bill, are aiming for a €50,000 to €100,000 reduction in the cost of construction. This is to be achieved by applying savings to the cost of individual apartments and by changes affecting the whole apartment block. Cutting down on floor space The figures, seen by The Journal , were prepared for the government by the Land Development Agency. Some of the biggest savings for each individual apartment in a new build are found by cutting down on floor space – potentially lessening the cost for a developer of between €30,000 to €43,500. Advertisement The costings show that, at €10-15,000, some of the largest savings in an apartment block could come from the removal of requirements for community and cultural spaces for the new building's residents. Further savings on the cost of each apartment could come from the decrease in dual aspect ratios – meaning an apartment has windows on at least two external walls – and could save a builder as much as €20,000 in certain cases. Another potential reduction is outlined by snipping balconies from new developments, with savings of between €11,000 and €22,000 estimated per apartment. In terms of overall prices, the report outlined minimum savings of €47,000 per apartment depending on how the reductions are made by the builder. Maximum savings are estimated at €85,500 per apartment. Across an entire apartment block – meaning changes such as scrapping community facilities or reducing floor space – minimum savings are estimated at €14,000 while maximum savings come in at €25,000. 'Dark shoe boxes' The changes have been criticised by the Opposition since they were unveiled last week. The Journal / YouTube Sinn Féin housing spokesperson Eoin Ó Broin warned it would mean renters paying higher rents for 'smaller and darker' apartments. Social Democrats housing spokesperson Rory Hearne said the 'liveability' of apartments in Ireland would be much reduced . Hearne raised the issue with Taoiseach Micheál Martin in the Dáil yesterday. Related Reads Dublin city councillors criticise Minister's plans to downsize apartments Taoiseach: 'Some councils took their eye off the ball, they need to go back to housing' House prices have jumped by up to 19% in some counties over the past year The Taoiseach denied that the smaller units will be 'dark shoe boxes'. These are sensible provisions, he said. The new unit designs will suit 'different people looking for different accommodation at different stages of their lives', concluded Martin. The Royal Institute of the Architects of Ireland (RIAI) also raised concerns about the new design rules, stating that while it recognises the pressing challenges raised around the viability and affordability of housing delivery, it is 'deeply concerned' that moves to relax key design safeguards risk undermining the creation of sustainable, high-quality living environments. Such a move could create future long-term challenges for apartment owners and tenants, said the RIAI. The new guidance will allow for development of apartment blocks with single typologies which is completely at odds with the previous work of the Department of Housing to strengthen the sustainable communities approach to delivering homes, the architects group said in a statement. It went on to state that evidence shows the cumulative effects of 'poorly sized and designed homes can contribute to social inequality and reduce overall productivity'. With reporting by Christina Finn Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
09-07-2025
- Politics
- Irish Examiner
Irish Examiner view: Cutting back on flats and standards
The ongoing housing and accommodation crisis continues to seep into all areas of life, and we seem no closer to finding a resolution. The crisis is of such proportions that it appears almost impossible to find an approach that may make a difference, with the latest idea from the Government a proposal to reduce apartment sizes. James Browne, the housing minister, is to suggest changes to the laws governing the building of apartments, but cutting the size of studio apartments is bound to catch the eye — the aim is to reduce the minimum size of a studio apartment from 37 sq m to 32 sq m. On paper, this has the potential to increase the supply of apartments considerably. The opposition has raised concerns, saying this move will reduce living standards, but Sinn Féin's housing spokesman Eoin Ó Broin may have made a more salient point when suggesting the initiative is likely to raise the value of land and developers' costs. The minister's suggestion that his changes will cut building costs by between €50,000 and €100,000 per apartment may be correct, but are there any grounds for optimism that such savings will be passed on to prospective buyers? A more serious caveat surrounds the fire, accessibility, and environmental standards of these new apartments. The rush to build during the Celtic Tiger years left a poisoned legacy with which we are still contending, from the crisis with defective building blocks which plagued the north-west of the country in particular to the widespread issues with fire safety in apartment buildings. As far back as 2002, a Garda superintendent recommended prosecution against a developer after two people died in an apartment fire but nothing came of it, while an expert report has estimated that between 62,500 and 100,000 apartments or duplexes built between 1991 and 2013 may have defects that require remediation. This is worth bearing in mind when we consider sweeping changes to our apartment-building legislation. Lessons must be learned. Keeping it in the community Yesterday was Amazon Prime Day, though 'day' is a little misleading for a festival of spending which lasts some 96 hours, with analysts in America expecting buyers to spend up to $23.8bn (€27.6bn)across the four-day event this week. Given Amazon recently opened a dedicated Irish shopping website, it is reasonable to expect a surge in spending here also. It is entirely reasonable to expect people to be on the lookout for bargains, given the rise in prices across the board and the general increase in the cost of living, everyone is looking for value for money. Though children are off school at present, for instance, wary parents will be conscious of the need to stock up on various essentials for the return to the classrooms in a few weeks. However, it should be pointed out that traditional Irish businesses are also in need of support. As recently as May, the Government established a small business unit aimed at giving SMEs in the country more focus and support. The unit is under the direction of Peter Burke, the enterprise, trade, and employment minister. He recently pointed out: 'Small businesses employ two-thirds of our population and keep our local communities and economies vibrant and strong. Government must recognise this, and ensure we are providing the support that SMEs need to run their businesses successfully and continue to provide vital employment and economic benefit across the country.' The contribution of small businesses to communities all over Ireland, big and small, is a telling point. It may be a cliche to hear such businesses stress that the money they generate remain within those communities, but it is also a fact. The money spent on Amazon purchases goes, ultimately, on events such as the company owner Jeff Bezos's recent wedding. The contrast could hardly be starker. Hardline Tory The death was announced yesterday of former British politician Norman Tebbit at the age of 94. Tebbit served as a minister under Margaret Thatcher and came to embody hardline Tory attitudes. After the Brixton riots in 1981, he said his father had been unemployed in the 1930s but instead of rioting he 'got on his bike and looked for work.' Later he became synonymous with the 'cricket test', when he suggested the teams British Asians supported in international cricket games showed whether they were loyal to Britain. Described by his own party colleagues as abrasive, Tebbit is probably best remembered in Ireland for surviving the Brighton bombing in 1984. The IRA planted a large bomb in the Grand Hotel in Brighton while the Tory party conference was ongoing, killing five people, including one Tory MP. Thatcher was unhurt by the bomb but the ceiling and floor of Tebbit's room — directly beneath Thatcher's — collapsed, burying him and his wife, also Margaret. When they were rescued, she had suffered a broken neck and was paralysed for life; Tebbit had severe injuries to his ribs, shoulder, and pelvis. He did not stand in the 1992 election in order to care for his wife. Strongly right-wing in his view, Tebbit maintained his involvement in Tory politics well into the 21st century but for many, he will always be a reminder of the grimmest part of the 1980s.
The Journal
08-07-2025
- Business
- The Journal
Department of Housing did not consult with tenants on plans to shrink minimum apartment sizes
THIS MORNING, THE government signed off on plans to drastically reduce the minimum standards for apartments in a bid to boost supply. Under the changes, which take effect immediately, the minimum size of a studio apartment will be reduced from 37 sq m to 32 sq m, while developers will no longer have to provide a mix of unit sizes in apartment blocks. Fewer windows and balconies will also be required, while a requirement to have indoor 'communal, community and cultural facilities' has been scrapped. The Department of Housing did not consult with tenant organisations, homeowner organisations or members of the public ahead of the changes. It is understood the changes were kept under wraps due to the fact that they were 'extremely commercially sensitive' and may have led to developers pausing building that is currently underway ahead of the changes being confirmed. As part of the changes signed off today, a rule that required that half of apartments in a development be somewhat bigger than the minimum standard has been reduced to 25 per cent. While another rule that required half of apartments in suburban developments and 33 per cent of apartments in urban developments to be 'dual aspect' (which means having windows that can be opened on at least two walls) has now been reduced to 25 per cent in all settings. Housing Minister James Browne said the changes come in an effort to unblock blockages in apartment delivery. He said he wants to clear away red tape and address 'viability issues', which he blames on delays in the housing system. Advertisement 'We are taking decisive action, without compromising on any essential regulations, to ensure apartments are viable to build,' he said. Speaking on his way into Cabinet this morning, the minister said apartment delivery in Dublin has 'collapsed'. 'We've looked at the housing delivery from last year, it was certainly lower than we hoped, lower than we expected, and it was very disappointing,' he added, arguing that the government has tied itself in 'regulatory knots' in recent years. Department officials believe the changes announced today could lead to a cost reduction of between €50,000 and €100,000 per apartment. It was also confirmed today that apartment buildings that have already received planning permission but are not yet complete will not have to be sent back to the beginning of the planning process if they wish to tweak their designs to align with the new rules. Reacting to the new rules, Sinn Féin's housing spokesperson Eoin Ó Broin said they prove that the government has been 'captured by the institutional investor lobby'. 'This policy was tried and tested in 2018 by then Fine Gael Housing Minister, Eoghan Murphy. It was such a disaster that Darragh O'Brien reversed it in 2022. 'That government is reintroducing it again now shows the absolute poverty of ideas from Fianna Fáil and Fine Gael when it comes to housing,' he said. Meanwhile, Social Democrats housing spokesperson Rory Hearne said the changes would allow developers to build 'glorified shoeboxes'. 'It will only result in increased profits for developers – and unaffordable apartments that nobody wants to live in,' he said. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
