Planning permission grants up 30.6%

THERE was a 30.6% increase in the number of planning permissions granted last year as people attempted to cash in on lucrative tax incentive schemes ahead of the December deadline, it emerged yesterday.

Figures released by the Central Statistics Office (CSO) yesterday show that 25,790 planning permissions were granted for new dwellings in the last three months of 2004 compared with 19,752 in the same period in 2003.

This major surge in demand for planning permissions in the final quarter of 2004 was because anyone who wanted to avail of a series of tax incentive schemes had to have their planning permission secured by December of last year.

Construction Industry Federation (CIF) housing director Hubert Fitzpatrick said these regulations were brought in by the Government in 2003 and builders have been given until July 2006 to have these houses and apartments completed.

“The building industry is now geared up to deliver a high level of housing within this time frame with a sufficient workforce in place,” Mr Fitzpatrick said.

Among the schemes that qualify for these tax incentives are: holiday homes, urban renewal projects, hotels and car parks. They were introduced in the mid-90s to attract investors into the building market.

However, because the schemes were criticised for failing to provide first-time buyers and the potential for abuse, then Finance Minister Charlie McCreevy decided in December 2003 to phase them out.

A deadline of December 31, 2004, was imposed for securing planning permission while the building completion deadline was set for July 31, 2006.

The CSO figures released yesterday also show that between the last quarters of 2003 and 2004:

There was a 33.3% hike in the permissions granted to new houses.

There was a 25.8% hike in the permissions granted to new apartments.

One-off houses accounted for 19% of new dwellings in the final quarter of 2004 compared to 35.6% in the same period in 2003.

And the total number of permissions granted for all developments in 2004, including commercial units and those that do not qualify for tax incentive schemes, increased by 20.8%.

The CSO also shows that the Southern and Eastern areas got 3,112 planning applications in the fourth quarter of 2004.

This was followed by the Border, Midland and Western regions who had granted 1,602 planning applications in the same period leading up to the deadline.