Covid-19: Impact on Planning, Housing Affordability and a Return to Construction Sites

Earlier this week it was reported by the Irish Times that Ireland’s construction sector is likely to be first in line to return to work as the current Covid-19 restrictions are gradually lifted, in accordance with public health advice. It is expected that infrastructure and FDI building projects will be prioritised in the first phase of economic resumption (currently scheduled for after the May bank holiday weekend), followed closely by social housing developments that are at a stage nearing completion. All other house building activity is expected to resume on a phased basis.

Housing

Speaking to main Irish media this week, real estate lead at Deloitte, John Doddy, has warned that “efforts to address the ongoing shortage in the supply of new and affordable homes are likely to experience a significant setback as a result of the Covid-19 crisis”. A new report from Deloitte suggests that the fallout from the pandemic will continue to be felt in the residential property sector even after the threat of coronavirus recedes. The report points out that the strong requirement for housing has not diminished over the course of  the current crisis and, crucially, the effects of delayed delivery of homes are likely to impact negatively on affordability as the economy contracts.

Planning

The above-mentioned Deloitte report calls for a fully-functioning planning system to be maintained throughout this pandemic in order to ensure any delays to current applications are minimised, while also avoiding a backlog of applications for assessment later in the year. It forecasts a significant decrease in the number of residential planning applications in the current quarter, despite a strong first quarter start to 2020.

An Bord Pleanála and the 31 local authorities nationwide are continuing to operate (although to varying levels) and the Office of the Planning Regulator has updated its

‘Clarification on the Operation of the Planning System During the Current COVID-19 Emergency’ as follows: https://www.opr.ie/clarification-on-the-operation-of-the-planning-system-during-the-current-covid-19-emergency/

Savills head of planning, Raymond Tutty, has added his voice to many in the industry calling for a digitised submission process: “The Government has been working on the delivery of an e-planning system since 2016. Once this crisis abates, we simply cannot delay the delivery of a modern e-planning system any further.”

Construction

The Construction Industry Federation (CIF) has drawn up a new standard operating procedure (SOP) to help prepare the sector for a safe return to on-site activity. This document is described as “the most important document the CIF has distributed to this point in terms of preparing your organisation to operate in the construction industry after restrictions are relaxed”. This preparatory work is crucial given that the coronavirus has halted the construction of an estimated 60,000 homes across Ireland, according to the Irish Times report. You can read the full article here: https://www.irishtimes.com/business/construction/coronavirus-halts-building-of-60-000-homes-in-ireland-1.4230460?mode=amp

The guidelines indicate best practice for travelling to work, accessing site facilities, enhanced sanitation facilities, strict hand hygiene protocols and the vital issue of social distancing at work. Shift work has been suggested as a potential method of reducing the number of workers on site at any given time. This is currently happening on essential construction projects, including delivering increased bed-space capacity at a number of regional hospitals. Significantly, every site worker will be required to undergo advance training online prior to returning to work, and every building site will be required to have a Covid-19 inspector. The federation has warned that these new measures to combat Covid-19, which go beyond current HSE safety guidelines, will inevitably increase timelines and cost for the delivery of projects for the duration of this pandemic.

While challenging, it is encouraging to see such a robust response from the industry and to have this response supported by the government is significant, particularly at a time when an estimated 150,000 employees in construction have either been laid off or put on income support over the past six weeks. There is an economic imperative for the State to make policy decisions that protect public health first and foremost, while easing pressure on the exchequer .