Is Planning Reform in Ireland Moving in the Right Direction?

A year ago, the introduction of the new Planning and Development Bill was met with cautious optimism, with the Bill being hailed as a “radical overhaul”, offering much-needed relief from the crippling complexities of Ireland’s planning system. All stakeholders involved – from housing bodies to regulatory agencies, local authorities, private developers and citizens – highlighted the urgent need for substantial legislative intervention. However, the more we learn about the new Bill, the less enthusiasm can be mustered by the industry trying to deliver vital new homes on the ground. 

As previously documented here, the new Planning and Development Bill is the third largest piece of legislation in the history of the Irish State. At that scale, adjustments are to be expected. According to a recently published report in the Irish Examiner, the Department of Housing has introduced a staggering 388 amendments to the bill, significantly more extensive than most legislation presented to the Oireachtas. Despite assertions from the Department that these amendments primarily serve to clarify existing provisions, the inclusion of changes that would prevent planning authorities from denying development permissions based on local housing capacity constraints has sparked controversy, suggesting a significant deviation from mere ‘clarifications’. 

It is worth pointing out that the proposed change to prohibit planning authorities from rejecting an application based solely on housing capacity issues within the local development plan is a positive change and one that signals a move towards greater flexibility in planning decisions. This is good for the industry and good for consumers; it is also the right thing to do as it recognises limitations on our data and the lack of current or timely data being used in the local development plans. It also reflects the lifespan of the plans and recognises that supply and demand dynamics locally can change quite a lot during that period (Covid and the flight to rural springs to mind). Over the longer term, the Government’s amendment to allow developments even in areas deemed at capacity under local plans, could open new avenues for investment by circumventing traditional bottlenecks related to zoning and capacity constraints, which must be welcomed.

But these things ought to have been considered at the initial drafting stage. It is the wrong way to reach the right decision. And as such, the uncertainty and complexity introduced by the vast number of amendments – and the contentious debate surrounding them – could well heighten the risk profile of development projects. Concerns over further legal challenges, procedural delays, and the ambiguous interpretation of planning guidelines could dampen investor confidence, affecting the viability of a project. This is particularly important in a context where clarity and predictability are critical to investment decisions.

These amendments have not only introduced delays by causing the Department to miss critical deadlines, pushing the debate to mid-February, but have also led to criticisms from opposition spokesperson, Eoin Ó Broin, who has declared the bill “not fit for purpose”.

So where does that leave us?

Essentially, our single great hope, which was initially seen as a landmark opportunity for reform, has increasingly come to mirror the very chaos it sought to organise, casting fair and reasonable doubt on its efficacy in addressing the very real and systemic issues within Irish planning. 

As always, we would love to hear your thoughts on this.

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group