Ireland currently faces an escalating housing crisis as the population grows and demand shows little signs of slowing.
Social housing stock has not kept pace in recent years, homelessness is on the rise, and challenges persist in quickly deploying effective government policy. Despite this, BTY believes that meaningful progress can be made in addressing Ireland’s housing needs if key policy changes are implemented. Adjustments to the rent cap, a more efficient planning process, increased investment in infrastructure, and realistic annual housing targets from the government would create a stronger foundation for sustainable housing delivery.
The Demand Dilemma
The demand for housing has surged in recent years as newcomers and returning residents to Ireland look for accommodation. The population is Dublin is now estimated to be more than 1.5 million, roughly 28.5% of the total population. This has widened social disparities; homelessness has reached alarming levels across the country. In January 2023, over 11,000 people—including children—were homeless. This figure has since risen to beyond 15,000 as affordable housing continues to be in short supply.
Supply Shortcomings
A recent update to the National Planning Framework outlined the need for more than 50,500 new homes per annum to 2030. Ireland’s stock of social housing is lagging; although the Housing Commission recommends having 20% of total housing stock be for social and cost-rental housing, in 2021 this figure was just 9%. This is far behind other countries such as Austria (24%), the Netherlands (29%), France (17%) and Sweden (16%).
In addition, the introduction of Rent Pressure Zones (RPZs) to cap annual rent increases has been criticized as it discourages landlords from maintaining existing properties or delisting units, reducing supply.
Overcoming Obstacles
Quickly and effectively adding housing supply that Ireland needs is crucial; BTY has been working with public and private sector clients to facilitate the construction of affordable housing across North America and Europe. Several measures we believe will be critical in overcoming existing challenges include:
🔘 Reviewing Rent Caps: Government controls on rent are often used to help control costs for renters and improve affordability. However, their implementation can cause ripple effects – restrictive rent controls discourage landlords from maintaining properties, reduce feasibility for schemes, or cause asset holders to remove their stock from the market entirely.
🔘 Streamlining Planning Processes: When asked about challenges to building, Owners and Developers often cite overly complex and time-consuming approvals and permitting processes. The new Planning Act announced in October 2024 provides some of the needed reform, but its 18+ month implementation timeline leaves much to be desired. Immediate action, such as priority approvals for social housing developments could be an effective measure in the interim.
🔘 Investing in Infrastructure: Beyond housing, infrastructure needs to be built to provide reliable long-term utilities such as water, sewage, electricity, public transportation, and high-speed internet. Expanding infrastructure, particularly to underdeveloped areas, can create even more affordable housing opportunities while connecting residents with their local communities.
BTY has helped facilitate the planning, design, and construction of more than 2,100 dwellings across Ireland through various public and private schemes including Irish Social Housing Programme Bundles I, II, and III.
We are working closely with private and public sector clients to tackle the housing problem with tailored services to control cost, schedule management, and optimising value-for-money. Our experts provide core expertise in Quantity Surveying, Fund Monitoring, Cost Management, Project Management, Assigned Certifier Services and Technical Adviser Services. Contact us today to discuss your project needs.
