LDA enters into agreement with construction companies to build 5,000 new homes

Under this agreement, the LDA will provide funding throughout construction of the housing projects based on certain milestones.

The State’s Land Development Agency (LDA) has entered into a partnership with 15 construction companies to deliver 5,000 new homes over the coming years as new data shows the number of planning permissions granted for homes has dropped significantly.

The panel includes some of the State's largest residential developers including Cairn Homes, Glenveagh Properties, and Marlet Property Group. According to the LDA, this new framework panel will ease financing issues by allowing phased payments to house builders for affordable homes.

Subject to funding, the LDA is targeting the delivery of 5,000 homes as part of this initiative. This announcement is part of the second phase of the agency’s Project Tosaigh programme and which has already resulted in agreements to deliver more than 2,800 affordable homes.

Under the initial phase, the LDA stepped in to provide a backstop to kickstart construction on stalled or otherwise unviable housebuilder-led projects. This involved the LDA agreeing to purchase homes upon completion, allowing housebuilders to commence or accelerate their development.

Under this new agreement, the LDA will provide funding through the construction phase for key housing projects based upon milestones reached during the development process.

The agency is planning to deliver at least 8,000 homes by 2028 through the Project Tosaigh programme.

The majority of the homes will be State-owned cost rental apartments and, subject to funding, the LDA will invest in the region of €2bn. 

Chief executive of the LDA John Coleman said the framework would give the LDA greater control over the housing projects it funds as it will be more “involved in design and financing from an earlier stage”.

The LDA said homes from the early phases will be primarily cost rental apartments. 

According to new data from the Central Statistics Office, the number of planning permissions granted during the first three months of the year stood at 8,387 — a drop of 28% compared to the same period in 2023.

There was a 20% drop in homes being granted permission and a 36.7% drop in apartments.

Houses accounted for 58% of these approvals, with apartments accounting for the remaining 42%.

Director of Property Industry Ireland David Duffy said the slowdown in planning permissions was being driven by a decline in apartments, “highlighting the significant viability and funding challenges to deliver this type of home”.