Peadar Tóibín
Ceist:116. Deputy Peadar Tóibín asked the Minister for Housing, Local Government and Heritage the steps being taken to ensure that house building in 2023 does not decrease. [3536/23]
Amharc ar fhreagraThursday, 26 January 2023
Ceisteanna (116)
Freagraí scríofa
Housing for All commits to increasing the supply of housing to an average of 33,000 new homes per year. It has secured and sustained levels of State investment of over €4bn a year, giving the construction sector the certainty it needs to help ensure the ambition of the Plan is realised and 300,000 new homes are built by 2030.
Supply is increasing. The 2022 target of 24,600 homes will be exceeded. Recent indicators show that the Plan is working:
- 7,544 homes were completed in Q3 2022, a rise of 62.5% from the same quarter in 2021.
- The number of new home completions for the first three quarters of 2022 was 20,807, which is more than was seen for the whole of 2021 (20,560) or any other year since the series began in 2011.
- In 2022, building commenced on almost 27,000 new homes.
- Planning permission was granted for 40,030 homes in the year ending Q3 2022. This is a 2.4% increase when compared to the same time period to Q3 2021 (39,077).
The ERSI forecast that 54,000 homes will be completed in the two years 2022 and 2023 (28,000 and 27,000, respectively), which is in line with Housing for All projections for the period.
Housing for All has in-built flexibility to review actions and targets, as needed. The first annual update of the Plan was published on 2 November 2022 and sets out how the Government is responding to the current challenges in the housing sector. The update identifies 33 high-priority actions to activate and accelerate the delivery of housing supply, whilst also continuing to deliver on the fundamental reforms set out in the Plan.
Critical to ensuring a sustainable housing supply, now and into the future, is addressing the cost of construction and ensuring innovation in how we deliver our homes. In this regard, my Department is close to finalising the Residential Construction Cost Study which will identify opportunities for cost reduction for consideration by relevant Government Departments and industry. The study complements work being carried out by my Department on other development cost areas, such as site acquisition and land value, planning, and utilities. The Department of Enterprise Trade and Employment is taking a lead role in supporting the adoption of Modern Methods of Construction (MMC). MMC has the potential to improve the speed of construction of new homes through the adoption of innovation by 30%, with a potential 25% reduction in costs. My Department is working closely with local authorities to increase the use of Modern Methods of Construction in social and affordable housing, which in turn will build capacity and demand for MMC.
The updated Action Plan can be accessed on my Department’s website at the following link:
www.gov.ie/en/publication/da0d1-action-plan-update-and-q3-2022-progress-report/
The challenges arising for the construction sector and the housing market are under constant review right across Government and the Government and I continue to explore options to ensure there is robust delivery of housing in 2023 and in the years to come.