Planning applications down in Offaly as residential construction remains sluggish – Link2Plans
The beginning of 2015 has seen growth in the residential construction sector in Offaly remain sluggish with the latest edition of the National Housing Construction Index revealing an increase in planning applications in 18 counties but commencements falling dramatically. Offaly was one of the 8 counties to see a decrease in planning applications, recording a drop of -12% when compared to the same period in 2014, while commencements have also fallen by -46%. Nationally, commencements are down -62% in the first two months of 2015 with ever county recording a decrease, while applications are up +9%.
The data contained in the National Housing Construction Index is aggregated by consultancy Link2Plans from real time planning and project information in every local authority area, with the latest edition of the National Housing Construction Index tracking every project from January through to February 2015, and comparing it with the same period in 2014.
According to Danny O’Shea Managing Director of Link2Plans, “Commencements are down in every county when compared to the same period last year with an overall national decrease of -62%, however as noted at the time by Link2Plans, 2014 was an exceptional year due to regulatory changes. The introduction of changes to the building regulations in March 2014 caused an unprecedented surge in commencements which was akin a one off stimulus boost. In fact, commencements for the first two months of the 2015 are up over 3% on the same period in 2013 which probably gives a more accurate picture of the steady but slow growth in the sector.”
“As building applicants rushed to lodge their commencements before the changes to the building regulations came into force on 1st March 2014, it created an anomaly in the market with an increase in commencements of +132% for the first quarter of 2014. These were exceptional gains and ones which we don’t anticipate will be repeated in the medium term.” continued Danny O’Shea Managing Director of Link2Plans.
Danny O’Shea Managing Director of Link2Plans said that “The fall in project commencements nationally reflects the situation in Offaly, which also saw commencements fall sharply. Nationally, the number of project commencements fell by 1,117 from 1,816 to 699 when compared with the same period in 2014.”
Planning Applications up 9% nationally
Danny O’Shea Managing Director of Link2Plans said “from a nationwide perspective, the number of planning applications in the first two months of 2015 increased by 155 from 1,711 to 1,866, representing an increase of +9% year on year. While it is still early in the year and we expect to see a clearer picture emerge over the coming months. With 18 counties recording a rise in the number of planning applications when compared to the same period in 2014, it reveals that confidence in the residential construction sector has remained strong, despite the fall in commencements.”
The National Housing Construction Index is produced by a team of researchers at Link2Plans and it relates to all Planning Applications and Project Commencements throughout the months of January to February 2015 and gives a direct comparison with the same period in 2011, 2012, 2013 and 2014.
Link2Plans have produced this index bi-monthly and it has been the most accurate barometer of real time sentiment (planning applications) and actual residential construction activity (project commencements) including residential developments (multi units), one-off housing (self-build) and one-off housing extensions.
