Water connection and local authority development contribution waivers propel one-off building starts by over 100 per cent – doubling last year’s numbers.
In this article we cover:
- Details of the surge in one-off housing starts
- Which areas experienced the most growth
- Insights from the Housing Market Monitor Q1 2024
- Analysis of latest one-off commencement notices
- Impact of development contribution waiver and water charge rebates
- In the pipeline: planning permission outlook
The latest Housing Market Monitor Q1 2024, released by the Banking & Payments Federation Ireland (BPFI), highlights a surge in housing commencements. Over 30,000 units (30,138) were started in the first four months of 2024, compared to approximately 32,800 units started throughout all of 2023.
The Department of Housing, Local Government and Heritage also released its latest data on the number of commencement notices (residential construction starts). The report shows that of the total buildings started in the first quarter of 2024, nearly 10 per cent (2,878) were one-off buildings, which is 1,521 more than during the same period last year, representing a 112 per cent increase.
In comparison, just 4,695 one-offs were started during the whole of 2023.
Cork County is the local authority which recorded the largest number of one-off build starts for the first quarter of 2024, with 309 commencements.
Waivers
Commenting on the Housing Market Monitor Q1 2024 Brian Hayes, Chief Executive of BPFI, said: “In April 2024 alone, 18,000 housing units were commenced, partially influenced by the anticipated end of the waiver on development contributions and the rebate on water charges.”
However, government data for May 2024 indicates a slowdown in total commencements, with just 1,983 started– a 35 per cent reduction from May last year when 3,059 units were commenced.
This decrease reflects the large amount of activity fast-tracked into April 2024, as this was when the development levy and water charge waiver were meant to end.
Self-builders can save thousands of euros on development levies alone, and €6k+ on the water charges for connecting to sewage and water.
New planning permissions decline
According to the latest BPFI report, planning permissions for residential units saw a significant 28 per cent year-on-year drop in Q1 2024, totalling 8,387 units approved.
Key highlights:
- Munster decrease in one-off housing: overall dwelling planning approvals rose by 12.8 per cent year-on-year, driven by a 54.2 per cent increase in apartments, although one-off houses decreased by 16.7 per cent compared to Q1 2023.
- Leinster growth for one-off: Laois witnessed a substantial yearly increase of 578 dwelling units approved, while Kildare and Kerry saw rises of 555 and 330 units respectively in Q1 2024.
- Apartments leading growth: Nearly 3,500 apartments received planning permission in Q1 2024, accounting for 41.6 per cent of all units approved, marking a 36.7 per cent decrease from Q1 2023. Dublin led nationwide apartment permissions at 57.4 per cent, with houses making up 6 per cent.
- Dublin Commuter Belt: region saw a notable increase to 19.2 per cent of total permissions, up from 7.6 per cent in Q1 2023.
