The latest edition of the National Housing Construction Index shows that Cavan has one of the worst performances this year in terms of commencements with a drop of -28% compared to an increase of 6% last year. On the other hand there are positive signs of improvement with a drop in applications of just -3% compared to the previous year of -28%.
The figures were compiled by researchers at www.link2plans.com
, who examined every housing construction planning application and planning commencement from January to August 2013. The Index gives a direct comparison with the same period in 2012. Viewed on a nationwide basis, the National Housing Construction Index reveals there is a decrease in planning applications (-6%) but project commencements were down even further (-10%) since last year.
In Cavan the construction commencement rate fell by -28%, from 89 in January to August 2012, to 64 in the same period in 2013. Compared to an increase of 6% in commencements last year, the rate of decline of commencements has significantly augmented. However, on a less negative note, the rate of applications has declined at a slower pace than last year from -28% to just -3%. Planning applications made in Cavan decreased from 101 in January to August 2012, to 98 in the same period in 2013. This means the rate of decline of commencements may not continue to be as sharp later in the year as a consequence of a levelling out of applications for such commencements.
Other counties besides Cavan showing signs of decline in commencements are Waterford, Westmeath and Kerry, which saw a fall in commencements of -49%, -47% and -29% consecutively. Commencement increases were seen in only five counties: Roscommon (51%), Longford (8%), Meath (8%), Dublin (8%) and Wexford (3%).
Offaly, Leitrim and Sligo exhibit the largest application drops with -29%, -31% and -39% respectively. Only six counties show planning application increases: Kildare (12%), Dublin (7%), Carlow (7%), Donegal (4%), Monaghan (4%) and Kerry (2%). However this is up on the same period last year when only two counties saw increases – Donegal and Leitrim. Last year commencements were down by -16% nationally compared to this year with a decline of just -6% nationally.
According to the managing director of Link2Plans, Danny O’Shea, the index shows that there is an overall trend of falling planning applications but the rate of decline is less pronounced than last year and this may be a positive contributory factor leading to an increase or at least a further slowdown in the decline of commencements. Even though Cavan has one of the steepest declines in commencements its decline in planning applications has eased. Therefore it is expected to see a further but less steep decline in the rate of commencements later in the year.