Builders are expecting to see a dramatic decline in planning permissions due to commencements falling by 13pc last year.
It will be difficult to see construction of many apartments start this year, the Construction Industry Federation (CIF) will warn the Dáil’s housing committee on Tuesday.
Developers building homes are concerned about planning permission in areas of high demand later this year, Conor O’Connell of the CIF will tell TDs and Senators.
The warnings come as the committee analyses the proposed overhauls in planning legislation, as the resourcing of the planning system and the timelines for decision making are at a critical juncture.
“Commencements have declined by 13pc last year and we expect that planning permissions will see a dramatic decline over the last 12 months,” Mr O’Connell will say in his opening remarks.
“Apartments have always been a challenge to deliver due to their high delivery costs and it will be difficult to see many commence in 2023.
“It is not an exaggeration to state that many housebuilders trying to deliver housing units are concerned they may run out of permissions in areas of high demand later in 2023.”
Neighbours cannot continue objecting to new housing if they fear their own homes may be devalued and neither can people or companies living “hundreds of kilometres away,” he says.
“We have seen objections to housing from organisations or individuals living several hundred kilometres away from the site, we have seen politicians objecting to housing that at the same time are calling for more housing.
“This simply cannot continue if we are serious about an inclusive and harmonious society where the provision of housing is facilitated by the state with appropriate legislation and procedures.”
There are around 70,000 homes waiting for sign off from either An Bórd Pleanala or a court decision on whether or not they can go ahead, according to Mr O’Connell.
He will call for the planning body to be properly resourced so decisions will be made faster.
David Duffy, of Property Industry Ireland, will tell TDs there is too much uncertainty and a high level of risk in the current planning system.
He said financing is proving a challenge for developers and because of risks within the planning system, building many homes is made “considerably more difficult”.
“This position also poses a direct risk to Ireland’s attractiveness as a place to do business and for job creation,” Mr Duffy will tell the committee.
“Without resolving our housing and planning challenges, Ireland’s international competitiveness is being undermined.”
He will say while there are supports for homes bought by owner occupiers, a critical challenge will be in building homes for rent.