THE RATE OF decline in the number of houses being built across the country has eased slightly according to new figures from the National Housing Construction Index for the first four months of 2012.
The index compiled and issued by Link2Plans shows that housing construction activity continues to fall across the country but the rate at which it is falling has eased slightly.
The number of extension of duration applications, whereby builders and developers extend their planning application after the original expired after five years has seen a significant rise.
New planning applications fell by 20 per cent, a rate which is slower than the 23 per cent rate at which applications fell last year.
Commencement notices, which are considered to be a real barometer of construction activity, fell by 13 per cent in the second volume of the index, a slight decrease on the 14 per cent fall in the first volume of the index.
The largest fall in commencement notices was in Donegal where house building figures were down 35 per cent followed by Monaghan which was down 34 per cent and Galway (down 31 per cent).
Donegal, Galway and Monaghan are now the three poorest performing counties the country.
There was a rise in the commencement activity in eight counties with by far the largest in Longford (56 per cent), followed Waterford, Westmeath, Cavan, Leitrim, Mayo, Offaly and Sligo.
This table shows the commencement breakdown county-by-county with figures for last year for comparison:
As for planning applications, considered to be a real time barometer of sentiment in the house building sector, the volume of the index showed that the number had fallen from last year’s 23 per cent fall to now stand at a decline of 20 per cent.
Three counties recorded small increases in planning applications in Donegal (2 per cent), Longford (3 per cent) and Leitrim (4 per cent).
The largest falls were in Kildare and Kerry (both 30 per cent).
This table shows a breakdown of applications on a county-by-county basis:
The research also showed that there had been a large increase in extension of duration applications whereby the homebuilder or developer applies for an extension of the original application of up to five years.
Commercial, economic or technical reasons can be cited in making such an application for an extension.
The figures showed a 16 per cent year-on-year increase in the number of extension of duration applications from 702 to 815, relating to residential projects.
Links2Plans said that the large increase probably reflected the different economic circumstances under which the application was first granted during the last days of the housing boom.
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