Cairn Homes to complete 2,500 homes but highlight acute lack of supply

Cairn finished the first half of the year with 1,530 units closed or forward sold with a total sales value of €560m.

Homebuilder Cairn Homes said demand for new homes has never been stronger and the lack of supply has never been more acute as it generated revenues of €131m in the first half of the year.

One of Ireland's largest home developers, the company finished the first half of the year, with 1,530 units closed or forward sold with a total sales value of €560m.

"While political debate on housing has raged back and forth, the reality today is that it remains hugely difficult for a whole generation of young people in Ireland to own a family home," Cairn Homes chief executive Michael Stanley said in a trading update.

16 developments back in full production

The company said 16 developments are back to full production and three new site openings are planned in the coming months. Most of Cairn Home developments are located in Leinster, but the firm has planning permission for almost 500 new homes at Castletreasure near Douglas in Cork.

Cairn is targeting the completion of 2,500 homes this year but Mr Stanley said given the difficulties with supply, the majority of people born between 1982 and 1996, who wish to own a home, will in effect been disenfranchised.

'Significant increase in capacity' needed

"However, this does not have to be the case ad infinitum. Government leadership’s comments on prioritisation this week point the way forward," he said.

"It requires a significant increase in capacity and delivery involving both public and private sectors working in parallel. 

It is also imperative that good planning secured for thousands of new homes does not get consistently stymied by referrals to national and European courts. Now it’s about moving forward, timely execution and making things happen.

His comments come as the government announced plans this week for revision to rent increases. Under the plans from Housing Minister Darragh O'Brien the current 4% cap on rent increases will be dropped in favour of hikes that are linked to inflation instead.