Redefining Irish Urban Planning: A Potential Pathway to 447,000 Additional Homes

If we start today by saying that we believe Ireland’s planning system is broken, not too many people here will disagree. However, if we put forward ideas for reform, we would expect a fairly robust level of disagreement. 

With that in mind, Sean Keyes has published an interesting article in TheCurrency about the ‘Street Plans’ initiative. This turns the planning reform inwards; rather than focusing on major funding strategies, the establishment of new agencies or the creation of overarching national plans, the initiative asks the question – what if the key to unravelling this dilemma lies at the heart of our urban neighbourhoods? While it sounds benign, it is actually a radical shift in perspective. It aims to make the silent majority – ordinary homeowners – a driving force in addressing Ireland’s housing predicament. While giving the community a greater voice might seem counterproductive, adding further observations (aka. objections) to proposed developments,  in reality we know that observations are raised by the loud minority – amplifying the silent majority would actually be more representative of the community, who typically want more housing that is affordable.

Globally, especially in economies like Germany and Japan, it’s common for a landowner to collaborate with builders to construct additional housing units on their existing properties. They use land assets to their potential and contribute to housing supply. In Ireland, despite the soaring property values surpassing the actual construction costs, the current planning framework stands as a formidable deterrent to this model. The lack of clarity and conservatism inherent in the system has given rise to an atmosphere of uncertainty, deterring small-scale developers and homeowners.

The Street Plans Initiative is the brainchild of Robert Tolan from the Better Planning Alliance, which advocates for a bottom-up approach in urban planning. This model envisions empowering individual streets to draft their own planning rules. To implement such a plan, it requires a consensus of two-thirds of its residents. Once sanctioned, homeowners can develop their properties in alignment with the street plan, eliminating the need for additional permissions. This not only encourages individual homeowners to partake in property development but also potentially elevates property values.

While the financial incentives are palpable, homeowners are also keen to ensure that the character and sanctity of their streets remain undisturbed. Street Plans addresses these concerns by allowing residents to decide on specificities, whether it’s a cap on building heights, architectural designs, or provisions for local amenities.

Through rigorous modelling, Tolan set out to decipher the tangible impact of the Street Plans concept. Drawing from a diverse sample of urban and suburban properties across Ireland, the analysis revealed that, under Street Plans, we could witness the creation of an additional 447,000 to 681,000 homes. Even at the conservative end of this projection, this represents a staggering potential addition of 29,000 units annually for 15 years. And these aren’t just any homes; these are properties in some of the most sought-after, well-connected neighbourhoods. If realised, a 20% growth in the national housing stock could translate to a dramatic reduction in house prices, between 20-60%.

It is difficult to see how it could work, but if it did, it could spawn a whole new type of small-scale development. As always, we would be interested to hear your thoughts on the above initiative, or indeed any other ideas you might have to tackle the current planning stalemate. 

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group