February sees record 3,699 new housing starts

An internal Government memo to Minister for Finance Michael McGrath shows a requirement to bulld 50,000 homes per year.

The number of residential construction starts reached a February record of 3,699, new data from the Department of Housing shows.

The figure represents an 85% increase on the 1,997 units which began construction in the same month last year. Of the 3,699 units commenced, 60% are scheme dwellings, 29% are apartments and 11% are for one-off units. It also brings to more than 7,000 the number of new dwellings to see construction begin in January and February.

The rolling 12-month figure shows annual housing commencements are now at 35,750, above the official annual Government housing target of 33,000.

However, the Business Post reported this week that an internal Government memo to Minister for Finance Michael McGrath shows those targets are “significantly below” the actual requirement of 50,000 homes per year.

The most recent purchasing managers index for the construction industry showed input costs continued to rise sharply in January, but the rate of inflation eased to a three-month low.

Respondents to the industry survey reported general inflationary pressures, while there were also some indications of higher shipping costs.

A separate report by broker Goodbody showed the top 10 Irish housebuilders accounted for a third of all house building starts last year and many builders operate on a very small scale, increasing the risk for the Government reaching its targets to ease the housing crisis.