Homebuilders must have a seat at the table if we are to meet Ireland’s ambitious housing targets

by | Jun 25, 2025

Conor O’Connell, CIF Director of Housing, Planning and Development, outlines why the housing crisis is no longer just about planning permissions or demand-side supports

As we celebrate the resilience and achievements of Ireland’s Top 50 Contractors in this edition, it’s vital to recognise the challenging environment in which the construction industry is operating. Despite immense difficulties, the sector has demonstrated extraordinary commitment and ingenuity.

Record levels of commencements last year underline that, but unfortunately, delivering those homes has become increasingly difficult.

At the heart of the issue are three interconnected challenges: inadequate infrastructure, apartment viability, and the limited availability of zoned, serviceable land. These obstacles must be urgently addressed if we are to meet Ireland’s ambitious housing targets.

Infrastructure deficits have now emerged as perhaps the single greatest blocker to increased output. Across the country, developments that have secured planning permission and even issued commencement notices are stalling due to shortages in wastewater treatment, water provision, and electricity network capacity.

In some areas of Dublin and Cork, power grid constraints alone are preventing shovel-ready projects from proceeding. These challenges stem from a decade and a half of underinvestment, and their impact is now coming home to roost.

Without a crisis-level response to accelerate infrastructure delivery, we risk squandering the significant momentum built by the industry. Apartment viability is another critical concern. If we are to achieve the National Planning Framework’s (NPF) target of 40 per cent of new housing within existing builtup areas, we must address the prohibitive costs of apartment development.

With almost half of apartment delivery costs absorbed by taxes, levies, and charges, government intervention is essential. Reforming Section 48 and Section 49 levies, providing capital allowances, revising rent controls, and implementing targeted financial supports are urgent measures to keep apartment development feasible and attractive.

The availability of zoned land is equally pressing. We welcome the revised housing delivery target of 50,500 homes per year and the recent approval of the updated NPF. Local authorities must not only zone more land but ensure it is serviceable and development-ready.

Emergency measures to expedite planning decisions, extend current planning permissions and reactivate expired Local Area Plans must also be pursued to unlock the full potential of our land resources.

Our message is clear: the housing crisis is no longer just about planning permissions or demand-side supports. It is about the physical ability to build homes and that ability is being constrained by issues we can and must fix now.

Government must prioritise stable, longterm strategies with consistent funding, regulatory reform, and a relentless focus on infrastructure delivery. Only then will we give investors and homebuilders the certainty needed to meet Ireland’s ambitious housing targets.

What is striking across all these challenges is the resilience of Ireland’s construction sector. The companies featured in this year’s Top 50 list represent the strength, determination, and adaptability of an industry that continues to push forward despite significant systemic barriers.

Our knowledge as active housebuilders involved in all stages of the process from purchasing land to servicing land to building homes and handing over the keys to homeowners must be recognised by the government in the establishment of any housing activation office.

Homebuilders have to have ‘a seat at the table’.

At the end of the day, homebuilders are motivated by more than targets and statistics. Their driving force is the desire to deliver quality homes, places where people across Ireland can live their lives, grow their families, and build their futures.

We have identified the solutions to release the sector’s capacity from the constraints that bind it, it is up to the government to enact them and hand the keys to a whole new generation of homeowners.

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