Planning applications and approvals for residential developments in Northern Ireland were down 10% in the last year, according to the most recent figures published by the Department for Infrastructure.
A total of 10,025 applications were received during the year which ran from April 2023 to March 2024. Of these 6,307 were for residential properties.
Average processing times for local applications were on average five weeks over the 15 week target, up one week from the previous year.
Ulster University real estate and urban studies Professor Martin Haran said that a previous surge in planning applications from private sector developers aimed at avoiding new building regulations will have played a part in the overall drop.
Mr. Haran explained that rising construction costs, and high interest rates have also played a part in the decrease.
But added that cuts to the social housing budget and that wastewater capacity constraints will continue to impact the number of new developments.
“There is significant challenges coming to the fore in terms of water and sewage provision and until the black hole in the NI water budget is resolved there are areas that new development will not be viable or permitted as the existing water/sewage systems do not have the carrying capacity,” he added.
Seamus Leheny, CEO of the NI Federation of Housing Associations said: “We have a serious issue around uncertainty in funding for the construction of social housing with a 73% cut to funding. The target was to build 2,000 new homes in 2024/25 but looking closer to 400.
“However the grant rate and financial criteria around building these homes is still unconfirmed therefore many housing associations are unable to finalise application for new scheme until they decide what’s happening with schemes that have had planning granted, but uncertainty around funding.”