Could modular homes be the model to ease soaring demand?
More modular homes would help Ireland reach housing targets. Only a limited number of have been built over the last decade in Ireland. Photo: iStock
The construction of modular homes of a more modest size looks like being another weapon of the Government to win the war on housing. While the stated unit costs raise some eyebrows, it’s still a fast and cost-effective way of simply getting more people housed in the country and trying to normalise supply.
Only a very limited number of modular homes have been built over the last decade in Ireland, despite the acute housing needs.
“I think the modular homes and the modern way of construction are going to be great,” says Pat Davitt, CEO of IPAV. “What I don’t understand is why they haven’t tried to do more of these … a lot of the construction work for them is done off-site so they’re ideal… it isn’t as though they’re going to build 20,000 of them but if they built 5,000 of them, it would be a huge help.”
Another helping hand should come in the form of the Government’s relaxation of planning laws on one’s own land, allowing people to build a detached apartment/home of up to 40m2 on their own property.
“It’s a basic need, a simple need,” says Pat. “People can buy the unit and put it up without too much expense.”
There are modular housing schemes already in a few places — including one in Mahon in Cork. In Limerick, there’s a plan to create modular housing for temporary staff for the 2027 Ryder Cup event, which would thereafter be available for the wider public.
There are more and more houses being built around the country. But with some areas faring better than others, the progress isn’t being felt evenly in all parts of Ireland.
“There’s a lot of new housing going on in Mullingar where I live,” says Pat, CEO of IPAV. “I’d say that there are 1,000 new houses either built or being built in Mullingar. Some towns are like that and in others, there’s nothing going on … I was down in Longford recently and there’s nothing being built there at all.”
Affordability is the live issue too. There is no point in building houses in a particular place unless the population can afford to buy them. It might sound like an obvious thing to say, but it’s always a point worth considering and it is very often the reason why houses get built in a particular area and why they don’t get built in another.
“Compared to this time last year or six months ago, the situation is very much ‘as you were’,” says Paul Hannon, director at Sherry Fitzgerald New Homes. “That’s in terms of the fact that demand is far outstripping supply, even though supply in the Cork region has increased somewhat.”
The new homes market is, unsurprisingly, still dominated by First Time Buyers, he says.
“We had 470 sales of new homes last year in Cork — up from 275 sales the year before, so it was a very busy year for us. About 82% of those sales were to First Time Buyers.
“In the last month, we’ve had 5 launches of housing schemes: Lake View, Midleton; Arderrow in Ballyvolane; Drake’s Point in Crosshaven; Millboro in Kerry Pike; Abbey Fort in Kinsale. We’ve also a new small scheme in Ballincollig — Woodfield … there’s good demand across all those schemes too.”
On the supply side, the initial challenges involve getting planning permission and infrastructure aligned.
“This is obviously a big focus for the Government,” says Paul Hannon, “and we’d be very much in favour of that happening as soon as possible, because it’s all very well having zoned land, but if you can’t get services on it, it isn’t going anywhere.”
“A sure positive for the new homes market in Cork is the increase in activity with more developments and stock on the market,” says Elizabeth Hegarty, Divisional Director, Residential, with Savills.
“This is alleviating the pressure on the demand side of things. However, demand seems to be stronger in certain areas in Cork where you will still see the demand for the development outweighing supply.
“Savills has already carried out several new homes launches this year, where all homes are reserved on launch day and with many people on a cancellation list. The second half of 2024 saw new developments come to the market such as Rock Gate in Midleton, Bayly in Douglas and Longview in Ballyvolane.
“Looking ahead to this year, we look forward to launching The View in Douglas with Cairn Homes, which is a selection of newly built 1 & 2 bed apartments and Glenbride on the Old Mallow Road with Murnane & O’Shea which is two-bed and three-bed townhouse and semi-detached homes. There are more exciting updates to come as the year progresses so watch this space.”
