The Dáil is expected to elect a new Taoiseach tomorrow, which will mark the formal commencement of the new coalition government. The government parties have agreed a new Programme for Government (the Programme), the “Accelerating Housing Supply” section of which outlines a comprehensive strategy aimed at tackling housing supply issues. This post sets out what you need to know.

A step-change in housing supply

The government acknowledges the critical need to increase housing supply to meet both current and future demand. It intends to introduce a successor to the “Housing for All” plan and aims to build over 300,000 new homes by the end of 2030. This ambitious target is underpinned by a multi-annual funding commitment and a stated intention to “ramp up construction capacity”.

Planning and active land management

To facilitate the intended increase in housing supply, the Programme emphasises streamlining the planning process by:

  • implementing the Planning and Development Act 2024, which became law in October 2024 but which is to be commenced in stages;
  • strengthening and streamlining compulsory purchase order (CPO) powers with a view to activating under-utilised land;
  • fully resourcing the Ministerial Action Plan on Planning Resources, recruiting additional planning staff and creating a public audit of zoned, serviced and unzoned land;
  • enhancing the resources of the Planning and Environment Court to address litigation efficiency; and
  • local authorities facilitating pre-planning meetings for significant developments.

The aspiration is that these measures should promote a faster and more predictable planning environment for the benefit of all stakeholders, to include developers and investors.

Investment in infrastructure

Recognising the critical link between infrastructure housing development, the government is to support Uisce Éireann in delivering key strategic projects. This includes various proposals to ensure large developments can proceed without delay, for example a new procedure for large developments above 100 units whereby a developer can meet local authority planners and Uisce Éireann on site to iron out issues at pre-planning stage. Additional capital is also to be invested, prioritising water and wastewater infrastructure.

These changes should address infrastructure bottlenecks that have historically delayed housing delivery.

Reducing delays and red tape

A National Housing Procurement Strategy will support housing standardisation with a view to reducing costs and delays, while a Central Housing Construction Supply Unit will also be established to co-ordinate and monitor all major public sector construction projects. It is also intended that a Land Price Register will be established, although there is currently no further detail as to what this will entail.

Modern methods of construction (MMC)

The Programme for Government includes several initiatives under its commitment to MMC, aimed at driving innovation and efficiency in housing delivery. Key elements include:

  • The establishment of an MMC Innovation Fund to fund new housing factories and expand existing ones;
  • The introduction of binding MMC targets, whereby at least 25% of all state-backed housing projects must utilise MMC;
  • An overhaul of the National Standards Authority of Ireland, aligning Irish regulations with EU standards; and
  • Promotion of the use of sustainable materials, to include multi-storey timber-frame residential units.

Land Development Agency (LDA)

The LDA will be further capitalised and its housing delivery targets increased up to 2030. It will also be granted strengthened CPO powers to activate under-utilised land for home building. Efforts are also to be accelerated to transfer under-utilised State lands appropriate for residential development to the LDA.  

The rental market

The Programme outlines a framework designed to support the rental market, with key points including:

  • Expansion of cost rental units through the LDA, local authorities, and Cost Rental Equity Loan funding to Approved Housing Bodies, embedding cost rental as a permanent tenure category;
  • Ongoing review of income criteria for cost rental to ensure broader tenant eligibility;
  • Continued support for affordable rents via the Secure Tenancy Affordable Rental scheme, with criteria under review to encourage greater private developer participation;
  • Establishment of a Rent Price Register;
  • Enhanced enforcement powers for the Residential Tenancies Board, including statutory timelines for complaint resolutions; and
  • Continued review of the effectiveness of Rent Pressure Zones.

Conclusion

The Programme sets out an aspirational vision for transforming Ireland’s housing landscape, with numerous ambitious initiatives designed to address the housing crisis. However, it remains to be seen which elements will take priority and how they will be implemented. An updated legislative programme, expected in the coming weeks, should provide clarity on the Government’s immediate priorities and the focus areas for the months ahead.

For more information, please contact Aoife Smyth, Knowledge Consultant, or any member of ALG’s Real Estate team.