Unlocking Housing Supply
Four key takeaways from BisNow’s Residential and Development panel discussion
Bisnow’s Residential Investment and Development Conference at the Aviva Stadium in November 2024 brought together Irish and European market leaders in housing and development to discuss investment, development and challenges relating to housing opportunities in Ireland.??
The Land Development Agency’s (LDA) CEO, John Coleman took part in a panel discussion focussing on Unlocking Housing Supply in 2024. The panel examined affordability in housing and gave an analysis on affordable housing and housing partnerships.??
The talk touched on the importance of consistent policy alignment to create certainty in planning and financing of affordable housing, the role of housing partnerships, and the need for investment in the supply chain to address labour shortages.??
John also gave insights based on the LDA’s progress and mission to maximise the supply of affordable and social homes on public and acquired land in a financially sustainable manner.??
Here are four key takeaways…
1. LDA is ramping up housing delivery
The LDA continues to build momentum with its delivery of affordable housing projects across the country. The Agency is currently advancing work on more than 20 State lands sites. It has 3 direct build sites in progress, including Shanganagh Castle Estate, with that number expected to grow to 12 or 13 by the end of this year.
Following the? Budget 2025 announcement of an additional €1.25bn in equity capital from Government, the commercial semi-state body now has €5bn in funding along with the ability to borrow another €1.25bn. ?This additional capital will facilitate further new affordable homes, both on sites directly delivered by the LDA, and through partnerships with housebuilders.?
2.Housing partnerships: Unlocking increased delivery potential
Housebuilder Partnerships are critical in accelerating the potential to deliver new affordable homes at pace.
The LDA’s partnerships with some of the country’s largest and most experienced homebuilders, are playing a key role, with the Agency acquiring new homes for cost rental and affordable purchase to accelerate the short-term delivery of approximately 5,000 homes.
Collaboration with industry experts has been essential in supporting smooth processes and engagement to ensure unnecessary delays and roadblocks can be avoided.
“Something that is sometimes not that readily understood is the continued importance of smooth approval processes… We (The LDA) have a good smooth process around that and a multi-annual plan to deliver it.”
3. Ability to adapt to the right housing delivery opportunities
While the Agency is concentrating its efforts on new builds on State land, the benefits of being open to new housing opportunities is vital to meet housing delivery targets and constructively react to changes within the Irish housing landscape.
Coleman noted that responding to opportunities that strengthens the Agency’s ability to meet its housing targets is key. With a finite amount of suitable State land available for affordable housing developments, the Agency has identified potential sites to acquire through private led acquisition. The purchase of land in Clongriffin is an example of this. Phase one of this development is scheduled to begin imminently, delivering over 400 homes.
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4. LDA’s owns and operates cost rental accommodation
Given current funding levels, the LDA is well capitalised for now. However, to avoid potential future risks (possible macro-economic impacts on the Irish economy were highlighted in an earlier panel discussion), exploring potential options is necessary to ensure it is possible to lever investment outside state sources if necessary. Building, owning and operating cost rental units, which accounts for about 11,000 of the 13,000 homes the Agency is committed to building by 2028, positions the LDA to do that.
“As the previous panel discussed, there are potential risks in the future. We [The LDA] look to own and operate [cost rental accommodation] with the view to having a leverageable asset to support investment and our goals. We envisage having a portfolio of scale that proves both attractive to investment and that proves the model works.”
A growing workforce?
With an increasing number of projects in the LDA’s pipeline and its growing presence as a cost rental accommodation provider, the Agency has grown to a staff force of almost 200 people – all focussed on supporting the delivery of housing projects across the country. The Agency will continue to build its workforce with ambitious, dynamic professionals across a range of areas.???
About The Land Development Agency
The Land Development Agency is a commercial semi-state body with a unique mandate to accelerate the delivery of new homes throughout Ireland.?
Its vision is to maximise the supply of affordable homes on public and other land in a financially sustainable manner, to help meet the country’s housing need.?
Find out more:?Land-Development-Agency-Statement-of-Strategy-2024-2028.pdf
Unlocking Housing Supply in 2024’s speakers?
John Coleman - The Land Development Agency