The planning system needs to be reformed if Ireland is to tackle the housing crisis, a leading economist has said. 

This week, the European Commission urged the Government to “substantially” increase its housing targets.

It is a suggestion that Economics Professor John FitzGerald said left him “not in the slightest” bit surprised.

“The success of the economy means instead of people emigrating, people are coming to Ireland and we need a load more houses,” he told Newstalk Breakfast.

“I think the dogs in the street know that.”

The Irish State is due to record a budget surplus of around €10 billion and Professor FitzGerald said the housing crisis is nothing to do with money.

Instead, he pointed the finger at the planning system.

“The Government has money, the problem is that actually building houses, you need people to do it, you need companies to do it and you need people to allow you to build,” he said.

“The planning system is a mess; every day you see in the papers, local people objecting to a planning application.

“There was a story in yesterday’s papers about things that are being held up and they go to appeal.

“In the courts of law, you get a judgement and occasionally people appeal it and very occasionally, the appeal is upheld.

“In planning, it seems the appeals are upheld a lot of the time - so everybody appeals [and] the system goes on forever.”

Homes that are presently under construction at Janeville, outside Carrigaline, Co. Cork, Ireland.- Picture David Creedon / Anzenberger Credit: David Creedon/Alamy Live News

The Government’s current target is to build 33,000 new units on average per year until 2030.

Professor FitzGerald said that the target needs to be revised upwards “substantially” and reform of the planning system would be necessary for any increase to be achieved.

“In appeals, if you go to the planning appeals board, there isn’t a substantial cost to you of appealing,” he said.

“Whereas, there is a substantial cost to society if the houses don’t get built.

“So, there is a mismatch there.”

In 2022, there were 29,851 new homes built in Ireland.

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Main image: New build housing estate in Donegal Town, County Donegal, Ireland. Picture by: Alamy.com