IPI Response To Knee Jerk Media Reaction on Housing Starts
Wednesday, July 05, 2006
The Irish Planning Institute (IPI), which represents professional planners working in the public and private sectors in Ireland, has responded to the recent “knee-jerk” media reaction to the release of planning statistics. The recent headlines in the Sunday and Irish Independent (3rd and 4th of July) referred to a recent decline in the number of planning permissions granted in 2005.
The Institute’s President, Henk van der Kamp stated:-
“The simplistic but usual discrediting of professional planners in the public sector by the recent headlines fails to get to grip with the complex nature of planning and the economics of the construction industry. The recent dip in permissions granted follows two phenomenal years of grants of permissions. The peak includes the years where permissions were driven in many regions by imminent deadlines on Government tax incentives for housing in designated areas. 2005 was a peak year for grants of permission in the country- with a massive 75,650 new units granted- up from 69,756 on the previous year.”
He noted that the facts showed that, in the Greater Dublin area, there are over 26,000 housing units granted permission “ready to go”, and that this is much higher than the annual rate of construction. This number of units available to be built is now at its highest level in the previous 4 years.
Mr van der Kamp commented:-
“The question that has to be asked is whether, with so many housing units already granted planning permission out there waiting to be built, is the building trade getting cautious to avoid an over-supply in the face of rising interest rates by reducing the amount of “starts”? The amount of grants of new housing in any year has a very strong relationship to the amount applied for. The decline in permissions cannot all be laid at the door of planning authorities.”
On the issue of refusals, the Institute defended the stance taken by the Local Councils and An Bord Pleanala . Mr van der Kamp concluded:-
“The decision to refuse permission to housing applications reflects the need to ensure that the new homes for the future are of sound quality, well designed and adequately serviced (i.e. can be supplied with water and waste water facilities as well as good road access). Ensuring that standards of quality are met is an important part of the role of planning authorities whether at Council or An Bord Pleanala level, by making sure that homes for this and the next generation will provide comfortable liveable spaces and be adequate to meet their needs. Surely this is not too much to ask.”