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Planning applications for residential units drop

The number of residential units submitted for planning permission fell by nearly a third in the first quarter of the year, according to a new report by Deloitte.

The level of residential planning applications remained relatively stable at 77, but the level of applications granted dropped 26% year on year.

The number of commencement notices was 44% lower in the first three months of the year compared to the same period last year.

“The reduction in the number of units submitted is most likely a direct implication of the restrictions imposed over the first quarter of 2021,” said John Doddy, Deloitte Real Estate Advisory.

“The slowdown in residential planning permissions will inevitably have an impact on housing supply at some point in the next few years, compounding the impact from the construction shutdown caused by Covid-19.”

The report also found that the mix of residential unit types subject to commencement between January and March shifted substantially to housing over apartments.

The Deloitte report shows that of the 77 new residential scheme planning applications lodged in the first quarter, 36% were in Dublin, 36% in the rest of Leinster, with the balance across the rest of the country.

Of the 32 residential schemes for which commencement notices were lodged, only 12% were in Dublin, down from 42% in Q1 2020.

“It is evident the strong requirement for housing has not disappeared due to the current Covid-19 crisis, with significant pent-up demand for both rental and sales accommodation,” Mr Doddy said.

“However, affordability remains an underlying issue. Coupled with this pent-up demand and the evident slowdown in supply, this is likely to continue for the foreseeable future.”

Article Source – Planning applications for residential units drop – RTE – Will Goodbody

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