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Planning permissions for homes up 20% 08.07.08

by Damian Dowds, Inishowen Independent

ACCORDING to those that purport to know about such things, the country is now officially in recession. But green shoots of a recovery are evident, for Donegal at least, in terms of planning permissions granted in the period January-March.
According to figures recently released by the Central Statistics Office, some 758 planning permissions were granted in the county in the first three months of 2008. This is down from 969 in 2007, but masks substantial growth in the housing sector.
Of the 758 permissions granted in the first quarter, 439 are for the construction of new dwellings – up from 365 in 2007 – an increase of 20%. The permissions for extensions and alterations/conversions remain stable. However, the number of permissions granted for ‘other’ projects – commercial, industrial and agricultural buildings etc. – has halved from 398 in 2007 to 2008. A major grant scheme for agricultural buildings ended in 2007, and this accounts in large part for the drop off in ‘other’ permissions.
While planning permissions are not an accurate measure of building activity, they do indicate a willingness of individuals and developers to undertake construction projects.
Paddy Gallen of the Inishowen Co-Op, one of the largest building suppliers in the peninsula, admits that business is a little down on previous years but says that that nature of the local construction industry is changing.
“Business is back a bit,” he said. “The big sites are slowing down, but the one-off houses are going well.”
Anecdotal evidence suggests the self-build sector remains vibrant. With the squeeze elsewhere in the construction industry, people undertaking their own build can expect substantial savings. One local man revealed that the price he was quoted for block laying in 2007 had halved by the time he started his house six weeks ago.
“Increased fuel and food costs is eating up people’s incomes,” Paddy Gallen said, “and the banks have got very tight with their lending criteria, but it’s not all doom and gloom.”
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