Housing commencement notices for first three months of 2025 lowest in years, new figures show

In Cork City, there were just 31 commencement notices issued for quarter one, compared to 150 in Cork county. File picture

There were just under 3,000 housing commencement notices issued in the first three months of 2025, the lowest since 2021.

The figures published by the Department of Housing show of the 2,918 notices issued, there were 1,178 in January, the lowest figure for that month since 2017. In February, there were 1,017 commencement notices, the lowest for that month since 2021.

The worst figure was in March, just 723, the lowest for that month since 2016.

In Cork City, there were just 31 commencement notices issued for quarter one, compared to 150 in Cork county.

Figures were higher in Dublin City Council, with 937 commencements being issued in the first three months.

The Department of Finance has previously cast doubt on commencement figures as an accurate forecast for the number of homes that will be built.

A series of Government initiatives, including the development levy waiver and Uisce Éireann rebate scheme, encouraged developers to submit their commencement notices and led to a flood issued in 2024.

“As the cost of submitting a notice is negligible, and there is no penalty for non-commencement, it is uncertain how increased notices will translate to completions this year,” the Department of Finance said.

Labour’s housing spokesperson Conor Sheehan said the commencement figures were unreliable and the Government had used them to its advantage during the general election campaign.

“It created the impression of momentum in the run-up to the general election,” Mr Sheehan said.

The Limerick City TD said there was huge uncertainty among property developers at present, while they await possible tax treatment changes in the budget and the Government’s new housing plan.

Concerns over funding

Meanwhile, concerns have been raised about the funding available for the Government’s Housing First scheme to exit people from long-term homelessness.

Director of advocacy at housing charity Focus Ireland Mike Allen said it appeared funding allocated towards the scheme could be eaten up by the tenant in-situ scheme.

Earlier this year, it was confirmed funding for housing acquisitions by local authorities would be funnelled into a single pot, instead of spreading across distinct schemes.

Several councils have said these funds have been directed towards the tenant-in-situ scheme, leaving a shortfall for other competing schemes like housing first.

In Cork City, councillors were told the funding allocation for acquisitions this year is “inadequate” to fulfil both existing commitments and the 2025 programme.

“After reviewing the current programme and financial commitments carried over from 2024, we have determined  the allocated funding has been exhausted,” Alison O’Rourke, Cork City Council housing director, said.

Mr Allen said Focus Ireland was “still coming to terms” with the possible shortfall, given the work the agency does to purchase existing properties to exit people from long-term homelessness.

“We are very concerned and we’re hoping the Government and minister has something else for funding Housing First,” Mr Allen said.

Funding to acquire housing for individuals in long-term homelessness can come from the Capital Assistance Scheme, with concerns being raised in Cork about a slowdown of funding.

A spokesperson for Cork Simon said: “There has been a slowdown in CAS acquisition funding and we would like some clarity [from the Government] on that.”

It comes as a protest was held outside City Hall on Thursday in opposition to funding cuts towards the tenant-in-situ scheme.

In Limerick City and County Council, it is understood the local authority is no longer taking applications for the tenant-in-situ scheme, with its allocated funding for 2025 set to be used to clear the existing backlog of properties.

A spokesperson for the department highlighted the change to the development levy and water connection fee as reason for the falloff. 

"Activity in Q1 likely reflects shift in focus in the construction sector to progressing those homes already in the pipeline," the spokesperson said.