Minister for Housing James Browne will seek Cabinet approval to allow developers to apply in certain cases for a three-year planning permission extension.
The move comes as the ESRI will tell an Oireachtas committee later that it does not expect any major increase in housing supply this year and next year.
In its opening statement to the Oireachtas Committee on Housing, the ESRI is forecasting that just over 34,000 homes will be delivered in 2025 and 37,000 in 2026.
The ESRI believes that planning reform, land management, modern construction methods as well zoning are key to creating a housing system that better meets the needs of Ireland’s expanding population.
To that end, Mr Browne will present a proposal to the Government to extend planning permission where housing developers have faced delays because of things like judicial reviews, a lack of finance and infrastructure difficulties.
The legislation, which follows extensive consultation with Minister of State John Cummins, would enable holders of planning permission who have been through a judicial review to apply for a retrospective suspension of the period of time their permission was held up.
At the moment, the clock does not stop when the permission is subject to a judicial review, which in some cases can take years.
The second provision will allow developers with just two years left on their permission to apply for an extension for up to three years.
However, the application must be made within six months of the legislation commencing and the development must begin within 18 months of its enactment.
The legislation is set to be passed before the summer recess.
Against the backdrop of the upcoming debate on the future of Rent Pressure Zones, the ESRI will tell politicians today that they face a trade-off between protecting current tenants’ affordability and the need to increase rental supply.
The housing committee will also hear from the Central Bank, which expects the number of new homes to rise to 44,000 by 2027.
It says commencements for new developments surged in 2024 but there is rising uncertainty around when these will be completed.
Addressing the housing shortfall progressively over the next 25 years will require an average of 54,000 new homes annually, while clearing the backlog quickly over a decade would require an additional 38,000 homes per year, the Central Bank believes.
To achieve this more serviced land, streamlined planning and increased construction productivity are needed.
