Applications for planning rise by 19% this year

There are more positive signs for the construction sector following increases in the number of residential housing planning applications and project starts so far this year.

Planning applications are up 19% in the first six months compared to the same period last year.

A massive surge in project commencements ahead of the introduction of new building regulations has slowed, but the figure is still up 66% when compared to the same period last year.

Despite the increase in activity, output is still unlikely to meet the most recent housing demand forecasts.

The details are contained in the latest National Housing Construction Index report, published last night by Link2Plans.

Produced bimonthly, it is a barometer of sentiment and residential construction activity, including apartments, one-off housing, and one-off housing extensions.

The figures show that, nationally, planning applications are up 19% this year, with Dublin performing best with a 63% increase.

Link2Plans managing director Danny O’Shea said the upward trend which started at the beginning of the year shows no signs of slowing down.

“It is evidence of a level of confidence returning to the construction sector. Over half the counties recorded an increase in planning applications,” he said.

The index also showed a massive 132% increase in project commencements in the first six months of the year.

This was mainly driven by the introduction of building regulations on March 1 as people rushed to get work done before the regulations came into force.

While the growth rate has since slowed, the commencement figures are up a “very healthy” 66% when compared year on year, Mr O’Shea said.

This increase has been felt across the country — with the exception of Roscommon — as Westmeath, Monaghan, Sligo, and Cork, saw the greatest increase.

The ESRI recently said that 90,000 additional housing units will be required to be built across the country by 2021 to meet projected population growth and demand.

Mr O’Shea said while the index figures are positive, they are still relatively modest in the overall context of the level of construction activity required to meet this demand. On the up

Planning applications:

-Dublin +63%

-Waterford +59%

-Wicklow +46%

-Meath +40%

-Kerry +32%

Project commencements:

-Westmeath +189%

-Monaghan +138%

-Sligo +114%

-Cork +112%

-Meath +98%