Varadkar hails ‘positive momentum’ as home-building hits 15-year high of 33,000

Taoiseach Leo Varadkar has promised to maintain the “positive momentum” as new figures show home-building across the State rose to a 15-year high of nearly 33,000 last year.

Figures from the Central Statistics Office (CSO) show new dwelling completions totalled 32,695 in 2023, an increase of 10 per cent on the previous year.

This was the highest level of residential construction seen in the Republic since the Celtic Tiger era. It was also ahead of the Government’s Housing for All target of 29,000 units for 2023.

It is unclear, however, if the Government’s 9,100 social homes and 3,500 affordable homes targets for 2023 were achieved as the figures were still being compiled.

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“We are now really stepping up home-building each year, with the pipeline of well-built private, social, affordable and cost-rental homes,” Mr Varadkar said.

Minister for Housing Darragh O’Brien also welcomed the latest data, noting more than 100,000 homes had now been built since 2020, the year the Government took office.

“All the key housing indicators – commencements, completions and planning permissions – are trending upwards which bodes well for future supply,” he said.

In its latest quarterly update on the Housing for All strategy, the department said the Government’s two affordability schemes – First Homes and Help to Buy – were having a “real impact”.

It noted that more than 30,500 first-time buyers were approved for a mortgage in the 12 months to November.

However, critics contend both schemes are inflationary, noting that while headline house price inflation is less than 3 per cent, the cost of new dwellings, which are predominantly bought by first-time buyers using the schemes, is more than 10 per cent.

The latest figures show there were 10,289 completions in the final quarter of last year, a rise of 13 per cent on the same period in 2022.

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The number of apartments completed in 2023 was 11,642, up 28 per cent from 2022. The majority were in Dublin were the yield for investors is the strongest.

Close to six in 10 completions in the final quarter and for the full year were in Dublin or the Dublin commuter belt counties of Kildare, Louth, Meath and Wicklow. Of all completions in Dublin in 2023, almost 72 per cent were apartments.

There were 15,505 scheme dwelling completions last year, a rise of 2.4 per cent from 2022, while 5,548 single dwellings were completed, which was a growth of 0.9 per cent from 2022.

[ Close to a year's housing supply held up in planning delays or court challenges, report finds ]

Ian Lawlor, managing director of Lotus Investment Group, said: “This morning’s report from the CSO shows there was a 10 per cent increase in housing completions last year.”

“This is good news for prospective buyers as ultimately more supply will make more homes available to them, while also keeping house price inflation in check. Given that the annual rate of national house price growth has increased in recent months, it is imperative that more supply continues to come on board,” he said.

“Dublin has been at the forefront of the growth in housing completions, contributing a substantial portion of new dwellings and apartment completions. Based on our own real-time conversations with house builders, there is still huge demand for the new developments coming to the market – both in Dublin and beyond,” he said.

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