The number of new houses being built in Tipperary has dropped in the first 5 months of 2013, according to new statistics released by the Construction Industry Federation (CIF).
According to the latest CIF Housing Statistics Bulletin, there has been a 20% decrease in new house starts, with 37 units being started this year compared to 46 during the same period in 2012. This represents a decrease of 9 units.
The Tipperary experience was different to what has been happening in most of the major urban areas around the country with an increase in house building taking place in Dublin, Galway and Cork. Overall the number of new unit starts around the country increased by 0.4% to 1,665 from 1,659 during the same period in 2012.
18 of the new builds were started in North Tipperary, down from 26 the previous year. In South Tipperary 19 units were started, compared to 20 during the same period in 2012. Of the new units started in Tipperary, 100% were one off, individual builds.
There was more positive news on the number of house completions with Tipperary experiencing a 5% increase. A total of 111 houses were finished in Tipperary up to the end of May this year, compared to 106 last year. This marks an increase of 5 units.
House completions decreased to 50 units in North Tipperary during the January to May 2013 period, compared to 66 last year. While in South Tipperary 61 units were built, up from 40 in 2012.
Speaking about the housing statistics, CIF Director of Housing, Hubert Fitzpatrick said, “These Tipperary figures and the rest of the statistics are further evidence of the trend in house building that is taking place around the country. What we are seeing is supply is falling in certain parts of the country and this is creating a strong demand for new housing stock, prompting work to begin on new housing units. We would expect to see the growth in new house starts continue in Dublin, Galway, Cork and certain other counties, particularly in some of the areas surrounding Dublin.
“What is also noticeable is that the number of housing schemes is on the increase. We have seen more multiple unit developments being built on a national basis during the first five months of 2013. Multiple units made up 26% of the total starts, compared to 20% in 2012. This emphasises that more sustained house building is starting to take place, as opposed to recent years whereby one off housing has been the only real source of activity.
“We expect there to be a decline in finished units built this year from the 8,488 built in 2012. With the number of housing starts slowly picking up and the declining level of vacant stock around the country, our expectation is that 2013 will mark the low point of house completions. However future supply continues to be constrained by the shortage of development finance and the high costs of construction. Availability of mortgage finance will also play a major role in determining how the market proceeds from this point,” Mr. Fitzpatrick concluded.