More than 45,000 homes stuck in planning system, report finds

More than 45,000 homes are stuck in the planning system, according to a report by construction consultants Mitchell McDermott.

A further 28,000 homes have approval but no building work has yet begun. The figures account for close to three years’ worth of the Government target for residential construction across the State.

“Delays due to judicial reviews, and spiralling construction inflation have all contributed to the dramatic drop-off in commencements we are seeing,” said Paul McDermott, one of the authors of the report.

He noted that just 9 per cent of homes have come through the judicial review process intact over the past five years.

The report finds that the construction costs of a two-bed mid-range apartment rose by 9.6 per cent – or between €21,000 to €25,000 depending on location and specification – last year.

Mitchell McDermott found that the hard costs of building a two-bed, medium rise suburban apartment is now over €240,000.

The report says the biggest factors in higher costs over last year were the price of brickwork, which is 39 per cent more expensive, concrete (+27 per cent) and mechanical and electrical services (+18 per cent).

For the construction industry as a whole, costs jumped 12 per cent in 2022. The figure is skewed higher by the more expensive facades in office complexes. Mitchell McDermott said price pressures were easing and increases in costs are expected to soften to between 5 and 7 per cent this year.