The head of Roundtower Capital, a leading alternative funder of housebuilders, has claimed a “culture of silence” among developers over infrastructure bottlenecks is allowing inefficiencies to continue as the Government’s housing targets are being increasingly called into question.
“Developers are reluctant to publicly highlight these issues for fear of being penalised or blacklisted by the very agencies responsible for the delays,” said Ian Lawlor, whose firm has funded the development of more than 4,550 homes in the State since 2013.
“This culture of silence allows systemic inefficiencies to persist, further exacerbating Ireland’s housing crisis.”
The Central Bank and the Banking & Payments Federation Ireland (BPFI) warned last week that the Government was on course to miss its target of delivering 84,000 homes between this year and next, amid inefficiencies in the areas of zoned land serviced by critical infrastructure and productivity in a labour-intensive sector. It is aiming for 300,000 homes built by the end of the decade.
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Irish Water has stated, for example, that it can only connect 35,000 new homes a year to its network over the next five years.
Mr Lawlor said hold-ups were also occurring due to the lesser-known bureaucratic process of local authorities approving a name for multi-unit developments – a necessary step in securing electricity and water connections.
“This requirement is intended to ensure consistency and prevent duplication within the local authority area,” Mr Lawlor said. “Fair enough in principle. However, in practice, this process can be a significant bottleneck.
“After securing planning permission and deciding to proceed with the project, the developer submits a shortlist of around 10 potential names, typically with a historical or local reference, highlighting their top three preferences. The council then has up to three months to either select one or reject them all. If all names are rejected, the council is not obliged to propose an alternative, leaving the developer to start the process again.”
The finance provider said he had seen some cases of such “back-and-forth dragging on for up to nine months”.
Roundtower, formerly known as Lotus Investment Group, has provided €780 million in development loans over the past 11 years, which is estimated to put it among the top five alternative finance providers to the homebuilding sector over the period. The firm now typically funds 100-plus unit schemes.
While construction on 69,000 new homes officially commenced last year – exceeding the total for the previous two years combined – the BPFI estimates at least half were down to builders seeking to meet deadlines for eligibility for a development levy waiver and refund on water connection charges. To fully qualify for both initiatives, however, the homes would need to be completed by the end of 2026.
“In addition to delays in utility connections, inconsistent planning decisions by local authorities are actively undermining housing delivery,” Mr Lawlor said. “Councils across the country have arbitrarily dezoned land that was previously earmarked for residential development – often in direct contradiction to national policy.
“This short-sighted approach not only reduces the supply of serviced land but also increases costs for developers, who must navigate an unpredictable planning landscape. The Government’s ability to meet its housing targets is severely compromised when local councils pursue policies that contradict national objectives.”
Mr Lawlor has called for a “radical overhaul” of the Irish approach to housing and infrastructure, including the streamlining of utility connection processes, a “clear framework” to ensure local planning decisions align with national housing objectives, and the introduction of performance-based targets for utility providers to minimise connection delays.
“Without addressing the critical roadblocks of planning inefficiencies, utility connection delays and inconsistent land-use policies, the country’s targets will remain out of reach,” he said.
