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10/01/2014

Construction Activity In Housing Declines

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The latest edition of the National Housing Construction Index has outlined the continued decline in housing construction activity across the country.

The research, compiled by Link2Plans, did however indicate a slowdown in the rate of decline nationally from the same period of 2012, where every project has been examined over the first 10 months of 2013 to give a direct comparison with the same period of 2012.

The major findings in the research by Link2Plans were that, nationally, there was a fall in both planning applications (-5%) and project commencements (-7%). However these figures were up on the same period for 2012, when applications and commencements were down -18% and -9% respectively.

According to Danny O'Shea, Managing Director of Link2Plans: "When we look at the National Housing Construction Index for the same period in 2012, we can see improvements being made and although there was a continued rate of decline in 2013, the signs of recovery are clear to see."

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Nationally the downward trend from 2012 continued for 2013, however six counties managed to buck this trend by registering increases in the number of planning applications. Kildare (+11%), Dublin (+7%), Wicklow (+7%), Carlow (+6%), Kilkenny (+3%) and Monaghan (+1%) recorded increases – a significant improvement on 2012 where only one county (Donegal) registered an increase.

The largest fall in applications for 2013 was registered in Leitrim (-40%). Other significant decreases were seen Offaly (-26%), Sligo (-24%), Meath (-20%), Roscommon (-18%) and Limerick (-18%).

Overall there were signs of positive sentiment for the sector when compared with the same period for 2012.

The figures nationally for commencement notices, which are a real time barometer of construction activity, continued to show an overall decrease. The national rate showed a decline of -7%, however, much like planning applications for 2013, this was an improvement on earlier indices.

Dublin registered an increase of +11%, an improvement on 2012 where commencements were down -3% in the capital. Other counties which registered improvements include Roscommon (+52%), Wexford (+13%) and Monaghan (+12%).

The largest percentage decreases were found in Westmeath (-50%), Limerick (-32%) and Waterford (-28%). In contrast, for the same period of 2012, Westmeath registered the highest increase in commencements at +43%.

(CD/JP)

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