He points to the current statistics on State assistance schemes, which show those who receive aid are far fewer than those who apply for it due to a shortage in supply of eligible properties.
“Strong population growth ensures that demand is set to remain very strong for the medium to long term,” says Ray Palmer-Smith, director of new homes at Knight Frank, “therefore, much more needs to be done to ensure that the delivery of supply is accelerated.”Judy Sorohan, director of new homes at Hooke & MacDonald, and Palmer-Smith also point to high levels of employment for the perceived confidence in the new homes market.
“Some indicators are showing that new developments may be starting to dry up,” he says, “and housing starts will slow due to the planning process”. “Planning reform is ongoing with two planning and development bills [the Planning and Development Bill 2023 and the Land Value Sharing and Urban Development Zones Bill 2022] potentially to be enacted by the end of the year and the very recent publication of Draft Guidelines for Sustainable and Compact Settlements, which should allow for more affordable, sustainable and viable own-door housing schemes in future years, subject to a functional planning system,” according to Gaine.
There will be limited scope for price growth in the new homes sector over the next 12 to 18 months, says McSharry, as “potential buyers will continue to face affordability constraints due to the economy and higher mortgage repayments”.