The housing construction sector is set to see growth from the next quarter, according to the analysis from Link2Plans, the authors of the National Housing Construction Index.
The latest edition of the National Housing Construction Index compiled and issued by Link2Plans shows very strong signs for the housing construction sector. The National Housing Construction Index examines all house construction, residential developments and house extensions and compares them with the corresponding period for the year before.
This edition of the index tracks every project from January through to December 2013, while comparing it with the same period in 2012. Nationally, the Link2Plans researchers have identified ten counties (Dublin, Kildare, Wicklow, Tipperary, Monaghan, Louth, Longford, Cavan, Kilkenny and Clare) where there has been an increase in the number of projects that have applied for planning application, when compared with 2012.
The National Housing Construction Index when viewed on a nationwide basis, shows a very slight decrease in planning applications (-1%), the reality is that this figure has been improving consistently since the middle of 2013.
Improved sentiment along with significant budgetary changes, appear to have brought many new projects to the planning phase, in the final two months of 2013. All the indicators are that this has continued strongly into January and February of 2014, which allows the prediction to be made about expected growth in the next volume of the index.
The number of project commencements, which, as the name suggests, relate to projects that have started or are about to start within weeks, have seen significant growth, with increases in eight counties (Roscommon, Wicklow, Monaghan, Dublin, Carlow, Wexford, Meath and Longford).
Commencements are up 15% in Dublin, with a total of 1222 projects commencing in 2013 in the capital. Overall, there was a national decrease in project commencements (-4%) since 2012, with Westmeath seeing the largest fall at -38%.
According to the managing director of Link2Plans, Danny O’Shea: “the National Housing Construction Index shows us that the trend has turned in the housing construction sector. From the middle of 2013, a definite trend has emerged and with the increased focus on new building regulations, it is likely that an exceptionally sharp increase in projects were commenced in the first two months of 2014, which will be evident in the next edition of the National Housing Construction Index. Link2Plans have already been recording this strong surge in activity over the last two months.”