A new report from a leading Irish construction firm shows that Ireland has the fastest rate of homebuilding in Europe despite there the fact that there remains a significant deficit in the housing market.
Housing completions exceeded 36,000 last year and are expected to hit 40,000 this year. This is equivalent to seven homes per 1,000 people compared with a European average of around three.
However, the report from Glenveagh Properties, commissioned from Goodbody, urges Ireland to move urgently on three main priorities - Modern Methods of Construction (MMC), zoning, and the National Development Plan - if the country is to improve the scalable delivery of homes.
The inaugural Glenveagh Homebuilding Horizons Report combines for the first time comprehensive Irish/EU benchmarking housing research, Glenveagh's own data, and representative public polling on housing.
In total, Glenveagh is proposing 40 practical recommendations that will support existing policy and the various stages of the homebuilding process.
The report, released on Monday, identifies three immediate housing priorities. The first is to remove the barriers to Modern Methods of Construction (MMC) - an innovative form of construction where more of the house or apartment manufactured offsite and then assembled on site.
Glenveagh said this method can create homes that are quicker to build, more sustainable, and of a higher quality, thanks to digital design methods and precision engineering.
It also cuts the reliance on favourable weather conditions associated with traditional methods of homebuilding, while also opening up exciting new career and job opportunities in the industry, the homebuilders said.
"MMC is crucial to increasing supply, improving consistency of delivery and output, and curbing costs. However, the current regulatory structure is holding progress back. Certificates from bodies with European Accreditation should be accepted by Irish building control authorities where they meet all relevant standards, removing the need for separate domestic re-accreditation," Glenveagh said.
The second priority is to maximise zoned land and accelerate ten-year plans, with Glenveagh saying that a consistent national approach to zoning, with clear accountability, is needed.
It urges the Cabinet Committee on Housing to engage regularly with local authorities and the Office of the Planning Regulator to ensure the next round of development plan variations is adequate and new ten-year plans are put in place as soon as practicable.
The third priority is to fully fund the National Development Plan housing commitments, with the housing company saying that investment and reform must go hand in hand.
"State investment gives the private sector certainty and acts as a multiplier. Budget 2027 should maintain NDP housing commitments in full while reforming key schemes - including the Cost Rental Equity Loan, the Capital Advance Leasing Facility, and infrastructure investment - to ensure financial sustainability and maximise the homes delivered for every euro invested," the company added.
Glenveagh founder and CEO Stephen Garvey said it is well acknowledged that due to economic prosperity alongside significant population growth, the country has a major housing challenge for the coming decade, but he added that it is closer to resolving it than many might believe.
"Much of the analysis of the Irish homebuilding sector is political or academic. We work at the very centre of the process - from acquiring land and securing planning, through to delivering homes across all tenures," Mr Garvey said.
"We deal with our customers every day and understand what they need. We believe it is useful for the practical experience of companies like ours to be heard in a debate that is critical to Ireland's future competitiveness," he said.
"Trade wars, geo-political turmoil, and energy shocks are current and pressing issues. Trends like climate change sit alongside a forthcoming demographic crunch. Ireland's strong economic performance is funding strategic investments and the reforms required to address structural challenges.
"This 'Goldilocks moment' of national economic prosperity cannot be wasted when it comes to the necessary infrastructure and housing. We have an opportunity to deliver more homes - and ones that are more affordable and cost effective for the people who will live in them," said Garvey.
Minister for Housing, Local Government and Heritage James Browne welcomed the Glenveagh Homebuilding Horizons and said its insights are helpful and will inform policy debate.
The Minister said that over the last five years - to June this year - more than 156,600 new homes have been delivered.
"This compares with 87,819 in the previous five-year and just 29,855 in the five-years before that. While we are delivering more homes, there is much more work to be done to meet our ambitious targets," he said.
"Our new Housing Action Plan, combined with the unprecedented level of investment Government have committed, will bring about a very significant scale up in the delivery of housing over the coming years, address the needs of the most vulnerable in our communities, make buying and renting homes more affordable and support the development of villages, towns and cities across the country," he added.
Follow MyHome on WhatsApp for all the latest property news and advice.
