Kildare to see 4,000 homes get fast-track planning approval

W1siziisijiwmtkvmduvmjmvmdgvndgvndgvmtyxl0tpbgrhcmuuanbnil0swyjwiiwidgh1bwiilci4mdb4njuwxhuwmdnjil1d

Fast-track planning applications have been submitted for more than 4,000 new homes in Co Kildare since the Strategic Housing Development (SHD) fast-track planning system was introduced in 2017 and apartments accounted for at least 1,231 units, or 30pc of the total.

It will be interesting to see how these are sold. Will the developers go aim to generate sales as quickly as possible and sell the entire entity to institutional investors.

It will also test the appetite among institutional investors for developments where more than 70pc of the dwellings are houses rather than apartments.

One local agent acknowledges that while institutions prefer to buy complete projects with complete control over the block management, some developers aim to sell the apartment section of their developments to institutions and sell the houses to individual buyers, including first-timers.

This strategy will enable developers to achieve fast-track planning and will also enable them to reduce the risk of having to wait for months, if not longer, for individuals to buy vacant units and while bank interest bills are mounting.

However, not all developers are adopting this strategy as some commentators say there is now stronger demand for and availability of apartment mortgages than there was in the past when lending institutions shied away from them.

Joey Sheahan, head of credit at MyMortgages.ie, a broker set up in 2005, said his firm has had no difficulty obtaining mortgage approval of up to 90pc of apartment prices for first-time buyers.

"Some years back, when credit was tighter, certain banks reduced the loan-to-value available for one-bedroom apartments to as low as 75pc. And still today some banks may offer a lower loan-to-value on apartments in rural areas - of perhaps 80pc. But, in the main, most lenders are offering 90pc loans on apartments now," he said.

 

Fast-track planning applications have been submitted for more than 4,000 new homes in Co Kildare since the Strategic Housing Development (SHD) fast-track planning system was introduced in 2017 and apartments accounted for at least 1,231 units, or 30pc of the total.

It will be interesting to see how these are sold. Will the developers go aim to generate sales as quickly as possible and sell the entire entity to institutional investors.

It will also test the appetite among institutional investors for developments where more than 70pc of the dwellings are houses rather than apartments.

One local agent acknowledges that while institutions prefer to buy complete projects with complete control over the block management, some developers aim to sell the apartment section of their developments to institutions and sell the houses to individual buyers, including first-timers.

 

This strategy will enable developers to achieve fast-track planning and will also enable them to reduce the risk of having to wait for months, if not longer, for individuals to buy vacant units and while bank interest bills are mounting.

However, not all developers are adopting this strategy as some commentators say there is now stronger demand for and availability of apartment mortgages than there was in the past when lending institutions shied away from them.

Joey Sheahan, head of credit at MyMortgages.ie, a broker set up in 2005, said his firm has had no difficulty obtaining mortgage approval of up to 90pc of apartment prices for first-time buyers.

"Some years back, when credit was tighter, certain banks reduced the loan-to-value available for one-bedroom apartments to as low as 75pc. And still today some banks may offer a lower loan-to-value on apartments in rural areas - of perhaps 80pc. But, in the main, most lenders are offering 90pc loans on apartments now," he said.

 

This article was first seen on https://www.independent.ie/business/commercial-property/kildare-to-see-4000-homes-get-fasttrack-planning-approval-38138844.html

SHARE THIS ARTICLE