An Bord Pleanála delays contribute to fall in planning permissions for apartments

The total number of apartments granted planning permission last year was 16,723, a “large decline” of 36%, according to new figures from the Central Statistics Office (CSO). File picture: Eddie O'Hare

The number of apartments granted planning permission fell sharply last year, amid the lengthening delays at An Bord Pleanála and a fall off in the viability of such developments in cities.

The total number of apartments granted planning permission last year was 16,723, a “large decline” of 36%, according to new figures from the Central Statistics Office (CSO).

Overall, between houses and apartments, the number of dwellings granted planning permission in 2022 fell by 20.5% to 34,177. This was from 42,991 units in 2021.

"Changes to applications processes for Strategic Housing Developments (SHD) and related issues in An Bord Pleanála in 2022 may impact the number of planning permissions granted over recent quarters,” the CSO said.

“Users should also note that there is currently a backlog of remaining SHD applications before the Bord awaiting decision.” 

An Bord Pleanála has previously apologised for the delays in making decisions, and has said it is not meeting its statutory deadlines in a large number of cases.

Earlier this week, a Focus Ireland housing conference heard that there are tens of thousands of homes granted planning permission that will likely never get built due to factors that have made them unviable for developers, such as cost uncertainty and construction inflation.

Dublin accounted for 65% of all apartments granted permission across the country last year. The Focus Ireland conference heard that the issue around apartments with permission not being built is particularly acute in the capital, along with Cork city and Galway city. Across Cork and Kerry, 1,989 apartments received planning permission in 2022.

Number of dwelling units granted planning permission down 20.5% in 2022https://t.co/0tnqRzBQT3#CSOIreland #Ireland #Housing #HousingConstruction #HouseBuilding #NewDwellings #PlanningPermissions #IrishBusiness #BusinessStatistics #BusinessNews pic.twitter.com/SgCO1Ja9pL

— 🎄Central Statistics Office Ireland (@CSOIreland) March 10, 2023

In terms of house units granted planning permission in 2022, Cork accounted for the largest number of houses with 2,495 units (14%) followed by Dublin with 1,353 units (8%) and Wicklow with 1,286 units (7%).

Most areas of the country saw fewer homes approved in 2022 than in 2021, with the exception of the southwest (Cork and Kerry), midwest (Clare, Limerick, and Tipperary), and border region (Cavan, Donegal, Leitrim, Monaghan, and Sligo).

Under the Government’s much-maligned SHD process – which has seen An Bord Pleanála give payouts to developers for delayed decisions – the number of units granted planning permission in 2022 fell by 34%.

Breaking it down by quarter, there was an even sharper drop-off in the number of apartments getting planning permission in the last three months of 2022 compared to the same period in 2021.

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“Planning permissions granted for apartment units fell by 54% in Q4 2022 compared with Q4 2021, while there was a decline of 28% in house permissions granted during the same period,” the CSO said.

Earlier this week, the Irish Examiner reported that An Bord Pleanála has 479 planning applications that have been waiting more than a year to be decided upon, amidst a staffing crisis at the agency.

Meanwhile, the State was urged to intervene to turn these ready-to-go planning permissions into much-needed housing to help alleviate the housing crisis.

Goodbody’s chief economist Dermot O’Leary told the Focus Ireland conference: “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.”