Planning Permissions Q1 2024

On 13^th June 2024 the CSO published the latest data regarding planning permissions for Q1 2024.

Overall, there was a reduction in the number of units granted permission of 28% for the first quarter of the year, down 11,659 units compared to the same period in 2023.

The key findings are as follow

• There was an annual decrease of more than 28% in the total number of dwelling units approved in Quarter 1 (Q1) 2024, down from 11,659 units in Q1 2023 to 8,387 units in Q1 2024.
• Houses accounted for 58% of all dwelling units granted planning permission in Q1 2024, while apartments made up the remaining 42%.
• In Q1 2024, the number of houses granted planning permission fell by more than 20% when compared with Q1 2023, while apartment approvals declined by more than a third (-36.7%).
• In Q1 2024 there was an annual fall of more than 9% in the number of one-off houses receiving planning permission from 1,420 units in Q1 2023 to 1,288 units in Q1 2024.
• There was an annual decline of almost 24% in the number of multi-development houses receiving planning permission in Q1 2024 compared with an annual increase of almost 54% in Q4 2023.
• Across the four local authorities of Dublin, planning permission was granted for 2,003 apartments in Q1 2024, accounting for almost six in ten (57%) of all apartments granted planning permission in the state in the first three months of the year.
• Between Q1 2023 and Q1 2024, there was an annual decline of 56.8% in apartment units approved in Dublin.
• In Q1 2024, there was an annual decrease of 57% (5,608 to 2,388) in the total number of Strategic Housing Developments (SHD) dwelling units approved, of which the number of houses approved declined by 50.0%, compared with a fall of 61.2% in the number of apartments approved.

Despite the positive news of record-breaking commencements for Q1 2024, this data indicates a downward trend in supply of much needed housing, particularly given that planning permissions are a useful indicator of long-term supply. Activation rates are also going to be impacted by the slowdown in permissions granted, something which we have already seen following 2023’s data. For example, in the recently published Build 2024 report, 70% of 87,105 units with planning permission across Tier 1 Housing in the four Dublin local authorities hadn’t commenced construction. The impacts of the Crofton case decision are also still being felt, and whilst there has been improved resourcing at An Bord Pleanála level, this is not operating at full capacity which will further impact the delivery of housing supply.

The increased commencement rates for 2024 show the intention of homebuilders to continue delivering housing, however, the downward trend of planning permissions is concerning.

The full statistics can be accessed via the CSO website here: https://www.cso.ie/en/releasesandpublications/ep/p-pp/planningpermissionsquarter12024/