Number of homes receiving planning permission down by almost a quarter as sector 'remains in limbo'

New figures show approvals fell by 23% from more than 11,300 at the beginning of 2023 to just 8,723 in the second quarter

The notable drop in planning approvals has reignited housing fears, with Ian Lawlor, Managing Director, Lotus Investment Group saying supply shortages will continue to stunt housing growth. Andrew Matthews/PA Wire

The number of dwelling units approved in the second quarter of this year fell by almost a quarter as the housing development sector remains "stuck in planning limbo."

New figures from the Central Statistics Office show approvals fell by 23% from more than 11,300 at the beginning of 2023 to just 8,723 in the second quarter, adding to fears that a lack of supply will continue to add to the housing crisis.

Apartments accounted for 58% of all dwelling units approved, while housing units made up the remaining 42%.

The number of houses granted planning permission fell by 18% on an annual basis to 3,702 housing units, while apartment approvals were down by 27% to 5,021 units.

In the period, there was an annual decrease of more than 36% in the number of one-off houses receiving planning permission, compared with an annual decline of 32% in Q1 2023.

Annual multi-development house approvals dropped by 6% in Q2 2023 compared with an annual increase of 81% in Q1 2023.

Of the 5,955 individual applications for planning permissions granted in the second quarter of 2023, 1,471 were for new construction dwellings, 1,791 for other new constructions, 1,767 for extensions, and 926 permissions were for alterations and conversions.

The notable drop in planning approvals has reignited housing fears, with Ian Lawlor, Managing Director, Lotus Investment Group saying supply shortages will continue to stunt housing growth.

"The problem is planning, planning, planning and within this, the problem is a legislative one," Mr Lawlor continued. "The new planning act, launched in March was aimed at addressing the delays in the planning system but we have yet to see any real evidence of this.

"What we are left with is a shortage of shovel-ready sites, meaning builders, starved of sites, are bidding the site prices up, driving site prices up, impacting viability, increasing risk, and negatively impacting delivery."

"Legislators need to take a closer look at what is holding up permissions being granted and ask themselves if the rights of the thousands without homes are less than the rights of the far fewer number of planning objectors.”