Small and medium-sized homebuilders play a vital role in delivering housing across Ireland, particularly outside the largest urban developments. These companies contribute significantly to housing supply in towns and regional centres, yet many face a planning system that can create challenges around certainty and delivery timelines.
For Anthony Neville, CEO of Neville Homes, the role of SME builders in helping address Ireland’s housing shortage is clear. The company builds between 150 and 200 homes each year across the east coast and midlands, delivering a mix of private housing, Private Rental Sector (PRS) units and homes for Approved Housing Bodies (AHBs).
“We’re predominantly residential sales, about 80 per cent private sales,” Anthony says. “We source land, get planning, build out and sell. Predominantly private is our market, but we do construct PRS and AHB projects as well.”
Operating across a number of regional locations, Anthony believes the sector has significant potential to deliver even more homes if certain systemic challenges, particularly within planning, can be addressed.
Planning uncertainty
Planning timelines and regulatory complexity are frequently cited by SME builders as factors that can influence how quickly projects move from concept to construction.
“Planning absorbs a huge amount of our time,” Anthony says. “Nothing here is as challenging as the planning process.” He recalls a recent period when the company had planning applications submitted for around 900 homes, although only a portion had progressed through the system.
“At that time we had planning for around 900 units in the system,” he says. “But until permissions are secured, you can’t treat those homes as part of a confirmedpipeline. Out of that number we had only one project fully through the board at the time.”
This level of uncertainty can make long-term planning for construction programmes and workforce allocation more difficult.
“We’re trying to line up where our crews will go when one site finishes and where they’ll go next,” he says. “But it can be difficult to predict when planning decisions will come through.”
According to Carol Kavanagh, Director of Planning and Legal Affairs at Neville Homes, the planning process has become more detailed and involved in recent years.
“It’s not just putting in a planning application anymore and getting it granted,” Carol says. “Nearly every planning application now is appealed.” For some projects the issue is compounded by the status of local planning frameworks.
“Certain local authorities have local area plans that have expired,” she says. “That means we can’t use the LRD process because that depends on zoned land.In those situations we sometimes have to submit several separate planning applications instead.”
Those applications often proceed through the traditional Section 34 planning route, which can involve longer timelines.
Inconsistency and complexity
Another issue often highlighted by SME developers is variation in interpretation between different local authorities. “The interpretation of planning guidelines can differ from one local authority to another,” Carol says. “You have to learn the nuances of each one.”
That complexity adds another layer of to projects that already require significant upfront investment. “At the back of our minds we always assume that whatever we submit may ultimately be appealed,” she says. “So the application has to be prepared with that in mind from the start.”
While both Anthony and Carol acknowledge that government has introduced several planning reforms in recent years, they believe the focus should now shift toward implementation
and consistency.
“There have been considerable changes made to the planning system,” Anthony says. “Maybe the next step is allowing those changes to settle and ensuring they are implemented as effectively as possible.”
Working with Approved Housing Bodies
SME builders are also increasingly working with AHBs as part of mixedtenure developments. While this plays an important role in delivering social housing, the process can involve complex legal and funding arrangements. According to Carol, the legal processes involved can take time due to the number of parties involved.
“You could spend months agreeing documentation with the AHB and their solicitor,” she says. “Then it goes to the Housing Finance Agency and their solicitor might want changes, and you’re back to the table again.”
This process can involve several sets of legal advisers and detailed documentation, including collateral warranties from consultants. “The paperwork and the time involved can be substantial.”
For some SME developers, securing AHB agreements is essential to enable apartment development financing.
Apartment viability outside major cities
Apartments are becoming an increasingly necessary part of residential development due to density requirements in planning policy. However, viability can remain challenging in many parts of the country.
In many regional towns apartments are not financially viable. In larger cities, government supports have helped address that gap.
“The Croí Cónaithe scheme is beginning to prove successful in Dublin and Cork,” Carol says. “Extending similar supports to regional towns could help unlock more apartment delivery there.”
Without additional support, private market sales alone may not cover construction costs in smaller locations.
“You can sometimes have density requirements that include apartments,” Anthony says. “But in smaller markets the private sales market may not always support them at current cost levels.” In those cases, engagement with AHBs can provide an alternative delivery route.
Untapped industry capacity
Despite the challenges, Anthony believes the Irish construction sector has greater capacity to deliver housing than is often recognised.
“We’re running at about 70 per cent to 80 per cent capacity,” he says. “The reason we can’t go to 100 per cent is the lack of certainty in the pipeline.” That uncertainty affects hiring decisions and long-term investment.
“We can’t stack planning permissions against each other to give us confidence to take on more staff ,” Anthony adds. He points to suppliers and contractors that have expanded into export markets due to fluctuating domestic demand.
“There are companies that have invested in modern construction systems for housing,” he says. “But when the domestic pipeline isn’t consistent, they often have to look to export markets.”
Large contractors are also pursuing infrastructure projects abroad. “Many of the big contractors are working in the UK and mainland Europe on infrastructure projects,” Anthony says. “Ireland has the expertise and skills, but without consistent pipelines companies often have to look internationally.”
For Anthony, this demonstrates that the capacity exists within the sector – but unlocking it depends on greater certainty in the housing delivery pipeline.
Reasons for optimism
Despite the challenges, both Anthony and Carol remain strongly committed to homebuilding and believe the industry is moving in a positive direction.
“For the first time in years I feel the steps the department is taking are some of the most significant steps in the right direction,” Carol says. “It will take time for those measures to settle and start producing results, but overall it feels like the direction of travel is positive.”
