New housing target to be set at average of 50,500 homes a year

The Coalition is to agree new housing targets averaging 50,500 new homes per year during the lifetime of the next government.
It marks a sudden reversal on the issue, which had been bogged down amid expectations that the targets would not be agreed before the general election.
Minister for Housing Darragh O’Brien brought a revised draft of the national planning framework (NPF), a key document outlining the implementation of housing targets, to Coalition leaders on Monday evening.
The full Cabinet is expected to agree to the targets outlined in the updated draft plan on Tuesday, which envisages 303,000 homes being built from 2025-2030.
Coalition leaders agreed to a 41,000 home target for next year, rising to 43,000 homes in 2026, 48,000 in 2027, 53,000 in 2028, 58,000 in 2029 and 60,000 in 2030.
While the Coalition is only expected to agree to targets to 2030, it is understood that the NPF provides a basis for building an average of 54,000 homes annually to 2040.
The NPF provides the pathway to the targets by informing local area development plans and zoning around the country. While the Cabinet decision on Tuesday will mark a political agreement underpinning the targets, the final NPF will not be adopted until the next Dáil is elected — as it requires further environmental screening and then a Dáil vote.
[ The €500,000 suburban three-bed is now the house at the centre of the property price surgeOpens in new window ]
A Government source said it expected the housing targets to be adopted fully by the three Coalition parties in their election manifestos.
It marks a reversal from last week when senior Coalition sources believed there was effectively zero chance of agreeing new targets before the Dáil is dissolved after Fianna Fáil indicated it did not favour locking them in before the election.
That in turn led to a backlash from some in the construction sector, who argued that the setting of targets was a key step in providing a signal to the wider public sector that in turn would encourage zoning decisions and provide momentum for housebuilders.
In comments at the weekend, Fianna Fáil leader Micheál Martin indicated that his position was softening and that if the planning framework could be published he was “open to a set of figures”.
One Fine Gael source described this as a “climbdown” after it was reported that Fianna Fáil wanted to campaign on housing during the general election on a stand-alone basis, rather than a joint platform with the rest of the Coalition.
Against that, Fine Gael leader Simon Harris had been clear that he wanted the targets agreed before going to the country.
A Fianna Fáil source said the party was pleased the new targets had been agreed.
A revised draft of the NPF — updated from a version which was published during the summer — will be released in the coming days, it is understood.