Unactivated Planning Permissions Are a Symptom, Not a Cause

Apartment projects are nearly seven times less likely to have started construction

In the midst of Ireland’s ongoing housing emergency, a concerning development has emerged. The Department of Housing has chosen to halt its investigation into the issue of unactivated planning permissions, which has been a significant contributing factor to the sluggish nature of the country’s housing market. According to an article from the Irish Examiner titled ‘Department halts its probe into thousands of unactivated planning permissions’, the decision to discontinue the investigation has raised questions about the Government’s commitment to addressing the housing crisis (Irish Examiner). 

The review was conducted by consulting firm EY as part of a contract with the Department of Housing, aimed at assisting the state in understanding the underlying reasons behind the lack of commencement of some planning permissions. The initial phase of the research concluded in May and brought to light a startling finding. It revealed that a staggering 43,000 housing units in Dublin, out of an estimated 90,000 nationwide, had not begun construction despite having valid planning permissions by the end of 2022.

Moreover, the report disclosed a significant disparity between the commencement rates of apartment developments and housing developments in Dublin. Apartment projects were found to be nearly seven times less likely to have started construction compared to housing developments in the same region. These findings underscored the urgency of further investigation into the reasons behind the non-commencement of housing projects and the need for decisive action to address the issue.

However, the Department of Housing has decided against pursuing the investigation any further, leaving the underlying reasons for unused planning permissions unresolved. The decision has raised concerns among both policymakers and the public, as unused planning permissions remain a critical obstacle in alleviating the housing crisis in Ireland. Cynical opposition commentary has suggested that this benefits the industry – in reality, the opposite is true. Unactivated planning permissions are more of a symptom of the current delivery challenges, including viability, rather than a direct cause. A thorough investigation by the State might have led to policies addressing these challenges in a more targeted way. 

The opposition in the Dáil has consistently called for the introduction of ‘use it or lose it’ laws to incentivise developers to initiate construction promptly. Such legislation aims to discourage land-hoarding and speculation while expediting the construction of much-needed homes. An investigation might have reframed the conversation away from blame and towards a solution that enables greater and faster housing delivery.  

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group