Goodbody Stockbrokers reported that housing start-ups, a reliable predictor for future housing supply, soared to just under 18,000 in April, a record number since the financial crash. The firm’s study of the Building Control Management System (BCMS) established that 17,600 new residential projects commenced last month. This rise propels the total in the preceding 12 months to over 50,000 and the cumulative total for 2024’s first four months to 29,600 units, a 198% increase from the equivalent timeframe last year.
“Housing starts this year have seen an increase of between double and quadruple across all the regions of the country,” commented Dermot O’Leary, the chief economist at Goodbody.
This impressive growth has been attributed to the current provision of development levy waivers and rebates on water connection charges. The Government, in an endeavour to both reduce housing expenses and amplify supply, introduced a temporary development contributions waiver and wastewater connection charge refunds of Uisce Éireann last April. It was recently revealed that the extension for the levy waiver will last until December’s end, and September’s end for the water charge refunds.
O’Leary highlighted that the uncertainty surrounding the end dates of these incentives provoked a surge in starting activity in the construction sector. Developers seized the opportunity to commence projects to capitalise on available incentives, he said.
The brokerage announced that the total housing starts for the twelve months to April amounted to 52,500, consisting of 25,000 housing units, 22,000 flats, and 6,000 individual residences.
While this exceeded the annual target of 50,000 set by the Government for completions, Goodbody did not predict that these commencements would result in 50,000 completions annually.
O’Leary shared, “Builders faced minimal risk in issuing commencement notices but it is unclear how many of these will eventually be built.”.
Under the incentives’ terms, projects have to be complete by the end of 2026, which may delay the completion.
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