Danny O'Shea of Link2Plans.

Fall in residential planning and house commencements

The residential construction sector in Mayo remains sluggish according to the National Housing Construction Index published by Link2Plans.

Mayo is one of eight counties to see a decrease in planning applications, recording a drop of two per cent when compared to the same period in 2014, while house commencements have also fallen by 75 per cent. Nationally, commencements are down 62 per cent in the first two months of 2015, with every county recording a decrease, while applications are up nine per cent. Planning applications have increased in 18 counties.

The data is aggregated 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.

On the noticeable decrease in commencements nationally, Danny O’Shea, the managing director of Link2Plans, said: “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 to a one-off stimulus boost.

“In fact, commencements for the first two months of 2015 are up over three per cent on the same period in 2013, which probably gives a more accurate picture of the steady but slow growth in the sector.”

Mr. O'Shea added: “The fall in project commencements nationally reflects the situation in Mayo, 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.”

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 nine per cent 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,” Mr. O'Shea concluded.