
Plan to slash number of workers needed for housing targets through modern methods of construction
The number of workers needed to deliver around 50,000
houses
per year could be slashed by as many as 10,000 under plans to ramp up training in modern methods of construction (MMC), the
Government
believe.
The Coalition is hoping that productivity gains from using MMC to deliver buildings like modular units can reduce the number of workers needed to achieve
housing targets
.
The Programme for Government target is for an average of more than 50,000 homes a year to be delivered every year between now and 2030.
A recent Department of Further and Higher Education report on residential construction and retrofitting skills suggested that to meet such a target just under 80,000 construction workers would have to be recruited.
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However, under a scenario using more MMC the number of required workers to meet that target was projected to decline by around 10,000.
Minister for Higher Education James Lawless will release an action plan aimed at delivering thousands of workers skilled in MMC on Monday.
He said the plan 'marks a big shift in how we deliver construction in Ireland, faster and smarter with the skills to match.'
Mr Lawless said: 'Housing demand will continue to intensify and meeting that demand means building differently and building better. That's what this plan enables.'
The plan includes upskilling initiatives, new training pathways, and the development of skills such as digital proficiency, logistics, and quality control to support factory-based and off-site construction.
Mr Lawless said: 'Modern Methods of Construction offer a faster, more efficient, and more sustainable way to build. By moving much of the process off-site into factory settings, we can dramatically reduce build times, ensure quality, reduce waste, and lower costs over a projects life cycle.'
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Local developers have key role to play in attracting international investment for housing
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Minister for Housing James Browne said: 'It is critical we have the top quality people to deliver on what we have to build. That's needed quickly and it has to recognise the skill of this work.'
A spokeswoman for Mr Lawless said the action plan 'lays the groundwork to significantly increase the adoption of MMC, through expanded training provision, new accredited courses, a dedicated traineeship starting later this year, and practical on-site training at the National Construction Training Campus in [Co Offaly]'.
She said: 'Through this co-ordinated approach, a path is available for thousands of learners to gain the modern skills needed'.
Last week Taoiseach Micheál Martin turned the sod on a new headquarters for CPAC Modular in Dunshaughlin, Co Meath.
Mr Martin said MMC will play an 'increasingly important role' in house building, in particular in reaching the 50,000-per year new-builds target.
Housing delivery will have to increase significantly from the 30,330 dwellings completed during 2024 if the Government is to deliver on its pledge to deliver more than 300,000 by the end of 2030.
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Extra.ie
33 minutes ago
- Extra.ie
'Radical reset' of housing policy needed as targets to be missed by 10,000 AGAIN
Housing targets will be missed by up to 10,000 units again this year and will fall short for the next several years, can reveal. Officials in the Department of Housing have warned Minister James Browne that the number of new homes built this year is likely to fall 'somewhere in the low 30,000s', compared to a target of 41,000. Internal briefing documents prepared for the Housing Minister, obtained by under Freedom of Information legislation, also raised concerns over the construction of desperately needed homes into the future. Fianna Fáil and Fine Gael were accused of having 'misled' voters in the run up to last November's election, when they claimed 40,000 homes would be built last year but only 30,300 were delivered. 18/02/2025 Dublin Ireland. Fianna Fail Minister for Housing James Browne talking to the media on his way into today's cabinet meeting at Government Buildings. Photo: Sasko Lazarov/© In a statement to Extra, Mr Browne admitted this year's output will fall far short of target. He said it was 'difficult to see a pathway off the lower than expected base from 2024'. The Fianna Fáil TD insisted he is 'interrogating every area' that is delaying delivery of housing and 'demanding faster outcomes as soon as possible'. Ahead of the last election, the Government revised its housing targets upwards to account for Ireland's soaring population. Over the course of this Government's lifetime, the aim is to build 303,000 new homes – starting at 41,000 this year and ramping up to 60,000 by 2030. But there is already open admission within Government that their targets for 41,000 new homes this year and 43,000 next year will be widely missed, as the upward momentum in housing has evaporated. The documents prepared for the minister highlight the 'almost complete retrenchment of private international capital since 2022' as a 'significant factor' that will affect the delivery of housing in the coming years. Housing Development: Pic: Getty Images Institutional investors play a central role in the development of apartments and the 80% reduction in international capital since 2022 has led to a sizeable reduction in supply. The officials highlight that the pipeline for new apartments is slowing, with a 39% dip in planning permissions in 2024 'reflecting a general downward trend from the peak in 2020 and 2021'. This is already being felt in apartment completions which equated to 29% of all home completions in 2024, a drop of 7% from the previous year. The officials wrote: 'Delivery of apartments will be potentially constrained in coming years given the fall in institutional investment since mid-2022, and its slow return to date.' This depleted pipeline has placed the Government's housing targets beyond 2026 at risk, officials warned. They stated: 'The decline in overall approvals, as well as apartment approvals, has implications in the longer term for the delivery of Government's revised housing targets, with approvals falling short of the quantum needed to hit targets in 2026 and subsequent years.' Mr Browne said recently that he felt the Economic Social and Research Institute's prediction that 34,000 new homes would be built this year and 37,000 next year is probably broadly accurate. The internal documents prepared for Mr Browne by his officials in April state that an output in the low 30,000s this year is likely. They wrote: 'Published forecasts project between 32,000 and 35,000 new homes will be completed in 2025 – the forecasts will fluctuate as the year progresses, but somewhere in the low 30,000 range seems most realistic at this stage factoring in early feedback from the construction sector.' Minister for Housing, Local Government and Heritage James Browne TD speaking to the media in the Government Press Center following today's Cabinet meeting, Dublin. Photo: Sam Boal/Collins Photos The officials noted that while 'the emerging consensus from published forecasts' at the start of 2025 is between 32,000 and 35,000 new homes this year 'all forecasts should be treated with considerable caution at this stage'. They stated: 'A degree of circumspection is advised as a more conservative projection of 30,000, give or take, is mooted by stakeholders closer to residential construction sector.' Mr Browne said: 'I am seeing many of the same forecasts as are publicly available and most of them have the same trajectory for the year, which is in the low 30s, which seems realistic at this stage in the year – it would be difficult to see a pathway off the lower than expected base from 2024.' He said that he is 'interrogating every area' that is delaying delivery of housing and 'demanding faster outcomes as soon as possible'. Mr Browne added: 'I've been pulling together what's needed to boost delivery, including a revised National Planning Framework which will help increase our capacity and accelerate home building. The Housing Activation Office will hone in on the ground to address barriers impacting housing development. 'The buttons I press now may not feel like they have immediate impact but what I do now will impact home building for years and we have to get it right. I'm serious about that. Sorting out planning can be laboured – it is a rules-based process for many good reasons. That doesn't mean we aren't tackling it to speed it up. 'Measures to help scale-up delivery are being considered in the context of the next housing plan.' The officials pointed to planning permissions for 49,212 units that have not commenced in Dublin as one potential solution over the medium term. Of those, 7,272 are on sites where construction had started while 5,875 are being held up as they are the subject of a judicial review. Last week, Mr Browne announced plans to allow for the extension of planning permissions for developments that are set to expire and have not yet commenced. The permissions can be extended for up to three years. The proposals will also allow planning permissions subjected to or going through a judicial review to apply for a retrospective suspension of the permission for the duration of the judicial review. Pic: Sam Boal/Collins Photos Sinn Féin's housing spokesman Eoin Ó Broin told Extra: 'The ESRI and Central Bank, in their recent presentation to the Oireachtas Housing Committee, said that without a significant change in policy and investment, the new Programme for Government targets can not be met. 'All of the indicators are going in the wrong direction. 'Only a radical reset of housing policy, as recommended by the Housing Commission and Sinn Féin can start to undo the damage of years of bad Fianna Fáil and Fine Gael housing policy.' Mr Browne is set to unveil his new housing plan next month, prior to the Dáil's summer recess. Viability is a core challenge facing the sector, particularly in relation to apartments, with the Department of Finance in the process examining proposals to tackle funding challenges. It is expected that changes to apartment regulations will be made in an attempt to reduce the cost of building. The documents highlight the surge in the price of materials, which are now 33% higher than in January 2021. Officials wrote: 'Input cost inflation quickened for the second month running and was the steepest for almost two years.' The CSO's Wholesale Price Index for building and construction materials shows material input costs continue to rise. The Government has also been deciding on whether to retain, replace or amend the Rent Pressure Zones, which limit annual rent increases to 2%. It appears removing the 2% cap is now the plan. RPZs have been highlighted as a barrier to investment by institutional investors. Uisce Éireann has also warned that it will need an additional €2billion to connect new homes to the supply if it is to keep pace with increased housing targets. The housing officials pointed to issues in water and energy connections as one reason for the shortfall in completions last year as well as the Government's incentivising of commencing new developments.


Irish Times
2 hours ago
- Irish Times
Rules for renters: What are the planned reforms and will they work?
What's happening to the rules governing renting? A proposed overhaul of rules is going before Cabinet on Tuesday morning. It would see a significant shake-up in the rental market in the months ahead. What are the current rules? Rent Pressure Zones (RPZs) were introduced in 2016 to cap rent increases in areas where there was a very high demand for housing and rental homes. Initially, RPZs were confined to large urban centres but, as the housing crisis deepened, more and more areas were designated RPZs. In these locations, as it stands, rent increases cannot be greater than the rate of inflation or 2 per cent – whichever is lower. What are the changes proposed? The Government is planning to keep the caps for existing tenancies, at least to a large degree, while easing restrictions on rent increases for newly built homes. The plan – and it has yet to be agreed – would see the current RPZ annual caps not apply to new buildings constructed after a certain date, with the rents in qualifying properties instead to be tied to inflation. [ Rent controls to be eased for new builds in planned 'pressure zones' reform Opens in new window ] And why would the Government create what looks like a two-tiered rental system? In fairness, there is already a two-tiered system, with some properties in RPZs and some not, so what the Government is considering is a three-tiered system. READ MORE What is the market currently like for rents? Rents are climbing faster than at any point over the past 20 years, with the national monthly average between January and March surpassing €2,000 for the first time, according to a report from That compares to a low of just €765 in 2011. Why are rents climbing so fast? Much of that increase is down to a lack of supply. There were just 2,300 homes available to rent nationally on May 1st, down 14 per cent year-on-year and the third-lowest total for May in 20 years. In a properly functioning market that number should be closer to 10,000. Why is supply such an issue? There are many, many reasons but the author of the report, Trinity College Dublin economist Ronan Lyons, has said changes made to rent controls in 2021 when rent caps were reduced from 4 per cent to 2 per cent 'dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage'. And this overhaul is aimed at attracting that capital, is that correct? That is the rationale, certainly. The thinking is that if rent restrictions are eased for new apartments, more money will pour into the sector and more apartments will be built, which will ease the pressure on the market as a whole. Will the owners of these new builds be able to charge what they want? They will be able to charge what the market will bear, for sure. However, there is some good news for people who are renting now: under the proposals the existing cap of 2 per cent will remain in place – at least for existing tenancies, but landlords will be able to increase the rent to the market rate between tenancies, something which is not permitted under the current rules. [ Ireland's rising rents: 'Our budget would have been €1,300 a month, there isn't even anything listed for that' Opens in new window ] Surely that will incentivise landlords to evict their current tenants so they can get new ones in and charge them more? That is undoubtedly a fear. Under the proposals going before Cabinet, there will be more protections put in place for renters for a minimum of six years. During that period, there will be restrictions put in place on no-fault evictions. At the end of a six-year period, a landlord will be able to reset the rent to the market rate. Opposition parties have questioned the adequacy of these planned protections. Will the changes work? That is the big, big question. It is undoubtedly in the Government's interests that it does work. Part of the Government's pitch to voters in the run-up to the last general election was that the State had turned a corner on housing and that the supply of new homes would hit 40,000 in 2024. Completions instead fell by 7 per cent to 30,000. Housing commencements, which indicate future supply, have also fallen off a cliff, with housing starts in the first quarter of 2025 eight times down on last year and at their at their lowest level since 2016. The rate of building when it comes to apartments is even worse. What are interested parties saying about the proposals? Many are unconvinced. The housing charity Threshold has welcomed the degree of security it will give to tenants if restrictions on no-fault evictions are imposed for a six-year period. However, it stressed that it could actually push more people into homelessness if the RPZs are diluted. Sinn Féin housing spokesman Eoin Ó Broin dismissed the plan as 'utter madness' and said renters were being punished for Government housing failures by even higher rents and greater uncertainty. Mary Conway of the Irish Property Owners Association was downbeat for other reasons. 'There seems to be so many tiers to it and, while the institutional investors are getting favoured, there is nothing for the small property owners and nothing happening for rural areas – that is our biggest concern.' Ian Lawlor or Roundtower Capital, which funds building projects, said the proposals increased rather than reduced uncertainty, adding what was needed was all-party buy in for a 10-year plan 'to deliver these houses at scale'. He warned that the new measures would show those currently in the market that they were not valued. 'Small investors are leaving the market [and] they'll continue to sell up and leave.' Dr Lyons was more upbeat about the measures. He said, while the 'devil would be in the detail', it was a 'qualified positive' step. 'I don't think it's going to make that much a difference between the older and the newer stock. The more important change to me is the resetting when the tenant leaves. 'I think one of the biggest challenges institutional investors have is the combination of very low annual increases and the inability to reset when a tenant leaves. It's certainly not everything investors would have wanted but it might be considered a step in the right direction to encourage new rental supply. So I think it is a qualified positive.'


Irish Times
3 hours ago
- Irish Times
Data centres left waiting for grid connections and sharing home EV chargers
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