State urged to fund tens of thousands of 'uncommenced' planning permissions

With measures already in place, those in power are also under justified pressure to try something new as well as reinstating the Help-to-Buy scheme; one of the most important measures for first-time buyers and the building trade that has been introduced in recent years. File picture: iStock

State building is the “only game in town” if tens of thousands of proposed homes with planning permission are ever going to be developed, a housing conference has heard.

The Government’s Rainy Day Fund should be used to provide much-needed funding for housing that won’t otherwise get built, the conference hosted by homeless charity Focus Ireland heard.

A number of speakers addressed issues around "uncommenced" planning permissions in the country and what could be done to ramp up delivery of these homes, and potentially convert them into much-needed social housing.

There is no single reason why as many as 80,000 homes in the planning pipeline aren’t being built, the conference heard, but construction inflation has added further pressure on the private sector.

Goodbody’s chief economist Dermot O’Leary said: “It’s very rare to have quick wins in relation to housing policy. The funding of these developments is the closest to a quick win you could possibly get.

Given funding difficulties, the State is the only game in town and it should take the opportunity.

Construction Industry Federation director of housing, Conor O’Connell, said one of the “unifying themes” behind so many of these homes being built is the “commercial viability of getting that product delivered”.

He said the majority of "uncommenced" planning permissions are in Dublin and population growth has shown a clear need to build more homes in the capital.

“There can be a carrot and a stick approach,” he said. “And there are a lot of sticks here. The industry needs help at the moment.” 

Trinity College associate professor in economics, Ronan Lyons, said the current situation is the consequence of the Government’s own choices over the last decade. He said the Government could borrow to fund the cost of this delivery and create genuinely affordable homes.

“We know we need them,” he said. “So I think it’s incumbent on the State to take a look at itself and say we have the power to do this.” 

While the ESRI’s Kieran McQuinn cited the examples of the Rainy Day Fund that could be used, Department of Housing assistant secretary Aine Stapleton said some of the schemes introduced by the Government need further time to “bed in” before they can be seen to be effective.

Both Mr McQuinn and Dublin City Council assistant chief executive Coilín O’Reilly also stressed the need for the State to make sure it gets value for taxpayers’ money with whatever they invest in.