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Pathway to increasing new housing supply
From Department of Housing, Local Government and Heritage
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Boosting supply is key to resolving many of our housing challenges. Research has shown that the State needs an average of 33,000 homes per year up to 2030. In 2021, 20,570 homes were built. In 2022, 29,851 homes were built. The 2022 total exceeded the Housing for All target of 24,600 homes for 2022.
Over the lifetime of Housing for All up to 2030, the State will be the biggest provider of social and affordable housing. Alongside the private sector it will significantly scale up housing supply to meet demand.
Among the main actions under this pathway committed to or delivered are:
- A new Croí Cónaithe (Cities) fund, which is in place to address barriers to constructing apartment developments in urban areas for owner-occupiers. It will bridge the current “Viability Gap” between the cost of building apartments and the market sale price (where the cost of building is greater). €450 million has been allocated to 2026 and it is expected to deliver up to 5,000 additional apartments for individuals seeking to buy a home
- A Vacant Homes Tax , which came into effect in 2023. The primary purpose of this new tax is to increase the supply of homes for rent or purchase to meet demand
- Introduction of a Residential Zoned Land Tax . This aims to increase housing supply by activating zoned, serviced residential development lands (including mixed-use lands) for housing. It also aims to incentivise landowners to use existing planning permissions for housing
- Increased contribution by developers to social and affordable housing - from 10% to 20% - in the increased value of zoned residential developments
- Introduction of Land Value Sharing to ensure sharing of the increase in land values resulting from zoning decisions. The proportion secured by the State will be channelled into local infrastructure to support development, including social and affordable housing, where it will create most value for the community
- The establishment of ‘Urban Development Zones’, which will provide a coordinated, plan-led approach to the delivery of residential and urban development
- A new planning process for large-scale residential developments, replacing the ‘Strategic Housing Development’ process. This has now been introduced
- The State’s land bank to bring forward up to 15,000 homes and the State to fund local authorities for land acquisition
- An average of €2.4 billion per year in direct State funding to 2025, and €3.5 billion in funding through the Land Development Agency
- A comprehensive review and consolidation of planning legislation. The Government has published a Draft Planning and Development (Amendment) Bill 2022. The Bill, if enacted, will bring greater clarity, consistency and certainty to how planning decisions are made. It will make the planning system more coherent and user-friendly for the public and planning practitioners
- Launch of the Future Building Initiative to facilitate the matching of employers’ vacancies to jobseekers seeking employment, and referral to education and training, as required
- Progression of a suite of actions to enable and enhance international recruitment and domestic workforce activation in construction
- Comprehensive changes to the employment permit system to ensure that almost all occupations in the construction sector are now eligible for a General Employment Permit. These changes have been implemented
- Implementation of the Action Plan on Apprenticeship 2021-25
- Bring forward legislation to allow Technological Universities to borrow from the Housing Finance Agency
- Conduct an analysis of each component of the cost of construction (including cost of compliance) of house and apartment development, informed by cost comparisons with comparable EU countries. A set of follow-up actions will be agreed
- Publish a joint Higher Education and Further Education response to skills demands to meet our housing and domestic retrofit targets
- Publish final section 28 Guidelines for Planning Authorities on Sustainable and Compact Settlement Guidance, including guidance on housing typologies to facilitate innovative approaches to medium and higher densities that may assist with supporting viability for constructing housing
- Amend the Section 28 Guidelines on Sustainable Urban Housing: Design Standards for New Apartments to remove Build to Rent (BTR) accommodation as a separate development type
- Define and commence the new Construction Technology Centre’s work programme of construction sector research to deliver on the technology fields identified by the centre
- Develop an incremental roadmap with targets for compliant Modern Methods of Construction adoption in publicly procured residential construction
- Develop an action plan to promote careers in construction
- Assess the findings and recommendations arising from the Report on the Drivers of Cost and Availability of Finance for Residential Development. Agree a set of actions for implementation arising from the report
- Scope out a programme of work to update the Building Control Management System (BCMS) system to enhance its data analytics and improve the quality of information captured on housing commencements
- Continue to expand regional capacity in craft apprenticeship training for in-demand construction-related apprenticeships, including plumbing and carpentry and joinery
- Commence a review of the Real Estate Investment Trusts (REIT) and Irish Real Estate Fund ( IREF) regimes to consider how best these structures can continue to support housing policy objectives.
Read this pathway of ‘Housing for All’ in full.
Housing for All: A New Housing Plan for Ireland - Pathway 3
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On 22 February 2023, a construction sector stakeholder event took place focused on identifying ways to drive innovation and boost productivity in residential construction, including through the adoption of Modern Methods of Construction (MMC).
The event was part of the Department of Enterprise, Trade and Employment led cross-departmental and cross-agency initiative on MMC under Housing for All.
Stakeholders heard updates on various government initiatives currently underway to:
- speed up delivery times for new home construction
- increase use of off-site manufacturing
- drive transformation in the sector.
On 26 January 2023, the Draft Planning and Development Bill 2022 was published bringing an improved planning regime a step closer.
The Bill, if enacted, will bring greater clarity, consistency and certainty to how planning decisions are made. It will make the planning system more coherent and user-friendly for the public and planning practitioners.
Read more about the improved planning regime
On 26 January 2023, new dwelling completions figures for Q4 2022 were published by the Central Statistics Office (CSO), which showed 29,851 new dwellings were completed in 2022. This represents a 45.2% increase on 2021, when 20,560 new dwellings were completed. It is the highest annual total since the CSO data series began in 2011. Housing for All, the government’s housing plan, had a target of 24,600 new homes in 2022.
Quarter 4 2022 saw 9,148 new dwellings completed, the highest number of completions of any quarter since the data series began.
On 22 December 2022, the Report on the Analysis of Skills for Residential Construction & Retrofitting, 2023 to 2030 was published.
A priority action under Housing for All , the report identifies the construction skills needs from the further education and training and higher education sector to meet housing and retrofitting targets outlined in Housing for All and the National Retrofit Plan.
Read more in the Report on the Analysis of Skills for Residential Construction
On 1 November 2022, local authorities published the Draft Residential Zoned Land Tax Maps as part of the implementation of the Residential Zoned Land Tax (RZLT).
The RZLT measure is an important component of the pathway to increasing new housing supply, contained in the government’s Housing for All plan to 2030.
The aim of the tax, which will apply from 2024 to relevant land at a rate of 3% of market value, is to activate land for residential development throughout the country, rather than to raise revenue. Only an estimated one-sixth of residential zoned land is activated for housing during a local authority’s 6-year Development Plan.
On 20 October 2022, Section 22 of the Planning and Development, Maritime and Valuation (Amendment) Act 2022 (the Act) was commenced from 20 October 2022. Section 22 of the Act is commenced through the Planning and Development, Maritime and Valuation (Amendment) Act 2022 (Commencement of Certain Provisions) (No.3) Order 2022.
Read more about the new provisions relating to judicial reviews
On 27 July 2022, the government approved a multi-annual grant-funding package of €186.3million of infrastructure investment for the Clonburris Strategic Development Zone (SDZ) Enabling Infrastructure Project in South Dublin. The Urban Regeneration and Development Fund (URDF) is providing investment for the necessary infrastructure to develop a new town, Clonburris, located between Lucan, Clondalkin and Liffey Valley. The funding will enable over 8,700 homes to be built on the SDZ site, providing housing for an estimated 23,000 people.
Read more on the development of a new town in Clonburris, Dublin
On 1 July 2022, new national guidelines for the preparation of local authority Development Plans were issued. The revised guidelines aim to ensure Development Plans take into account the forecasted amount of housing in an area and that sufficient new homes can be built in key areas of housing demand. The preparation of a Development Plan is an essential function of every local authority, where important choices about the future development of the area are made for the next six years. The revised planning guidelines will help planners, local elected representatives, the public and the development sector to develop the best possible plan for their area.
Read more on the new guidelines for ensuring sufficient housing provision
On 10 May 2022, Minister O’Brien, and the Chief Executive of The Housing Agency, Bob Jordan, launched a call for Expressions of Interest in the Government’s proposed Croí Cónaithe (Cities) Scheme. The Scheme aims to increase supply of owner-occupier apartments and provide those who wish to purchase a home with a greater choice. It is expected to deliver up to 5,000 additional apartments for individuals seeking to buy a home in the five cities of Dublin, Cork, Limerick, Galway and Waterford.
It will also support the government’s objectives of compact growth and creating vibrant liveable cities for people who want to live close to work and urban amenities.
Under the proposed scheme a viability fund will help kick-start construction of apartment schemes. The Scheme will bridge the viability gap for those developments deemed to meet the eligibility criteria and the support is only payable at the point of sale to an eligible owner-occupier. The Government has allocated €450 million for the Scheme up to 2026.
Read more on the Croí Cónaithe (Cities) Scheme
On 22 December 2021, the General Scheme of the Land Value Sharing and Urban Development Zones’ Bill was published. The Bill proposes that communities get a greater share of increases in land value arising from local authority planning decisions and public investment in infrastructure. Communities will benefit from the ‘uplift’ in value through funding for essential infrastructure and social and affordable housing where appropriate.
The concept of Urban Development Zones is based on the existing Strategic Development Zones. They will involve a plan-led approach that must include:
- a planning and delivery scheme
- a key decision-making role for the local authority
- early engagement with the local community and landowners.
Read more on Land Value Sharing and Urban Development Zones
Housing for All: Investment and Homes Infographic - Accessible Version
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