New House Building 'Kick-Start' Package Announced

A number of new measures have been introduced to kick-start new housing construction and enhance supply.

Announced by Minister for the Environment, Community and Local Government, Alan Kelly, the new measures will be introduced from January and include:

• Enhanced supply of more affordable starter homes in key locations through a targeted rebate of development contributions in Dublin and Cork for housing supplied under certain price levels;

• New National Apartment Planning Guidelines to be issued by the Environment Minister to reduce the cost of apartment building in Dublin City by approximately €20,000 per unit;

• Changes to aspects of the operation of Strategic Development Zones to enable swifter adjustments to meet market requirements;

• The Governments Irish Strategic Investment Fund (ISIF) to examine funding for housing infrastructure on a case-by-case basis

Minister Kelly said: "Combined these measures should make badly needed new housing development in our urban centres much more economically viable. We have a major problem in Dublin in that very little housing at affordable levels is being developed and is adding further to our housing pressures and action is required now."

"The revised apartment planning standards will uphold good planning practice and at the same time reduce costs of providing an apartment development by at least €20,000 per unit. While changes of this kind are contemplated in Dublin City Council's development plan, however there is strong evidence emerging that developers were waiting for these to take effect in 2017 before initiating development and we believe it's time to fast-track the introduction of the National Guidelines.

"The changes will in no way affect building standards as these are set down by law. We are proposing changes to technical aspects of planning guidelines. The size of one-bed apartments will remain quite large by European standards so descriptions of "shoe-box" apartments are wide of the mark. In line with existing safeguards in my Department's guidelines, the new guidelines will ensure that there a good mix in the size of apartments. Also, these new guidelines will allow for some city centre developments to be built without the very large costs associated with underground and multi-storey car-parks, which recognises the trend towards urban dwellers who wish to avail instead of lower purchase and rental costs and prefer to walk, cycle and use public transport."

"These measures will help normalise the housing market. Housing completions for Dublin are likely to be down on 2014 figures, despite rapidly rising demand for housing. Therefore these measures, combined with the NAMA units, will have a big impact on housing construction."

(MH/CD)