State will require €20bn in development finance to meet higher housebuilding targets

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Housing-Crisis Berita

Department-Of-Finance

Department of Finance report says biggest stumbling block to future housing development was uncertainty around planning

Department of Finance report concludes that the recent rise in interest rates is having only a 'marginal impact' on viabilityBuilding 50,000 homes a year will require €20 billion in development finance annually, according to the Department of Finance. In a new report assessing the “funding landscape” for residential development, the department calculated that the 29,751 housing units completed in 2022 required development funding, both public and private, of about €11.4 billion.

It noted that the share of public funding – €3.5 billion – was bigger under the enhanced target because of “the increased costs in funding apartment development”.Landlord who threatened to take tenant ‘by the head’ and remove her from property ordered to pay €17,500 The biggest stumbling block to future housing development was the uncertainty around planning, it said. A six-month planning delay can reduce a projected 10 per cent return on a development project to 8 per cent while a 12-month delay can reduce the return to 6 per cent.

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