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Building costs impact the number of planning permissions

Planning permission buildings costs

There were 305 planning permissions approved in quarter four last year, the Central Statistics Office (CSO) data shows. This compares to 498 applications approved for the corresponding period in 2020.

Indications are that while there was a surge in applications following the first wave of the coronavirus pandemic, things have returned to normal levels, with demand said to be tempered by escalating costs.

The greatest activity in planning for new builds and extensions or conversions remains in the south of the country, which accounted for over half (136) of the 260 applications relating to new builds. This compares to 70 in the northern and western regions and 54 in the midlands and east.

There was a surge in applications following the first wave of the coronavirus pandemic but applications have returned to more normal levels of late with demand said to be tempered by escalating costs.

The sharp contrast in approvals has been attributed both to the fact that the number of applications submitted in quarters three and four in 2020 was influenced by a backlog in the system due to the coronavirus pandemic; and that confidence in new builds is being affected by current building costs.

Reports project that the number of planning permission applications submitted in the first half of this year will fall below typical levels for the time of year as farmers take stock of rising building material costs and elevated input costs.

In terms of the construction and agricultural sectors, many farmers are now delaying or cancelling planned construction buildings.

A brief look at the CSO’s wholesale price index for building and construction materials published on 22 March offers insight into price escalations:

– Rough timber has increased by the greatest percentage – between 60% and 70% year-on-year, while other timber is up almost 50%

– All categories of steel have increased substantially in price. Structural steel and reinforcing metal is up by 27%, with other structural steel recorded as running 48% higher, while another category of reinforcing metal costs 54.6% more than a year ago

– Stone, sand and gravel, cement, blocks etc were running 10% to 12% higher in February

– The average cost of electrical fittings/materials is reported as increasing in excess of 18%  

– Piping and plumbing fittings are up by between 8% and17% year-on-year

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