Housebuilder Glenveagh has revised down the number of suburban housing units it expects to deliver this year citing a "dysfunctional planning policy" as it awaits permission for 20% of the homes it plans to build.
In a trading update, one of Ireland's largest builders said they completed 1,354 suburban units in 2022, up 50% on the 902 units closed in 2021 and 90% ahead of the 712 suburban units closed in 2019
However, they said the current planning system and the delays meant they were reducing the planned number of completions this year, down from an expected 1,700 new homes to bring their target in line with the number delivered in 2022.
Glenveagh CEO Stephen Garvey said demand for homes driven by a fast-growing population and increasing levels of inward migration is putting further pressure on what is an already undersupplied housing market. "Addressing this significant undersupply continues to be obstructed by dysfunctional planning policy," he said. "We would now strongly encourage that planning policy reform is expedited to solve the longer-term structural supply issues the sector faces."
Glenveagh said it has planning permission for 80% of the suburban units it had previously intended to deliver in 2023 and continues to await decisions on the remaining 20% which are currently more than 10 months overdue.
The reduction in planned homes adds to growing concerns over the future deliver of new homes. A range of data shows a shape drop in the number of homes being completed and commencing construction.
For 2022, Glenveagh recorded strong revenue growth of 36% to €649m, driven by the suburban business segment. It resulted in earnings per share of 7.6c which the company expects to repeat in 2023.
Glenveagh will also commence a further share buyback programme to repurchase up to 10% of its issued share capital. This follows approximately €145m of capital having been returned to shareholders this year.