ARTICLE
20 November 2025

Housing Development: Update On Government Action Plan For Housing Delivery

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The Department of Housing published the government action plan for housing delivery, titled Delivering Homes, Building Communities: An Action Plan on Housing Supply and Targeting Homelessness...
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The Department of Housing published the government action plan for housing delivery, titled Delivering Homes, Building Communities: An Action Plan on Housing Supply and Targeting Homelessness, 2025-2030 on 13 November 2025. The plan sets a target of delivering 300,000 homes by 2030, and an average of 12,000 social homes per year. We outline the key takeaways for planning below.

Residential zoning & plan-led development

Immediate zoning reviews

The plan provides an update on local authorities' progress in meeting residential zoning requirements pursuant to the Housing Growth Requirements section 28 guidelines issued in July 2025. Each authority is obliged to ensure their individual targets are reflected in their development plans and that review is currently underway (August 2025-December 2025). Additional land will be zoned from January 2026 onwards, aligned with these guidelines.

The Government will publish a National Planning Statement setting out planning criteria for rural housing to be applied in development plans. The plan states that a consistent approach to rural housing is not being applied across local authorities at present. Although plan-led development in urban areas is a priority in the action plan, the importance of rural development is acknowledged. The nature and extent of rural development may also have implications for the delivery of renewable energy projects.

Urban Development Zones (UDZs)

Local authorities are being asked to identify potential UDZs, with the Land Development Agency (LDA) supporting masterplanning. Developers with landholdings in strategic locations, especially near high-capacity transport corridors, should monitor these designations closely, as UDZ status will likely accelerate infrastructure funding and planning approvals. A New Urban Communities Taskforce will be established to identify locations for the delivery of housing growth at scale. In addition to UDZs, Priority Area Plans are identified as a key tool to support faster, more responsive housing delivery. Local Area Plans will be replaced by Priority, Urban and Coordinated Area Plans under the Planning and Development Act 2024 once the relevant provisions are commenced.

Infrastructure delivery, coordination and funding

Housing Activation Office (HAO)

The new HAO is tasked with unblocking infrastructure delays, bringing together Uisce Éireann, ESB, NTA, and local authorities, with a focus on enhancing collaboration and co-ordination across infrastructure providers.

Standalone wastewater treatment plants

The plan signals regulatory reform to allow developers to deliver new standalone wastewater treatment plants, with subsequent transfer to Uisce Éireann. This is designed to bolster the service provided by UÉ to support increased levels of housing and will require regulatory reform relating to the granting of discharge authorisations.

€1bn Infrastructure Investment Fund

This fund is designed to unlock housing sites that are stalled because essential infrastructure, such as water, energy, or transport, is missing and not covered by existing capital plans. It will provide targeted funding to remove these bottlenecks, enabling local authorities and agencies to deliver critical infrastructure faster and support new sustainable communities.

Development contributions and land value capture

Review of development contributions

The plan states that "Mechanisms are needed to make sure that the State gets a fair share of the increase in land value that comes from public decisions – like zoning or designating land – especially in places where the State is investing in new infrastructure to support housing." The development contribution process will be reviewed, and the Government will consider bringing forward new measures. The impact of contributions on the viability of housing projects will be considered as part of the review, in addition to the State's resourcing requirements to provide infrastructure for housing. The proposed Land (Zoning Value Sharing) Bill 2024 lapsed with the dissolution of the Dáil in November 2024. Although the plan does not reference the bill, a similar mechanism may be envisaged.

Residential Zoned Land Tax

Early data shows increased land sales and a softening of prices, suggesting the tax is having its intended effect. However, the plan confirms ongoing use of this tool to discourage land hoarding, with annual mapping and deferral only available for actively developing sites.

Judicial review

Under new planning law, the judicial review period no longer counts towards the duration of a planning permission, preventing permissions from expiring due to delays. The new Planning and Development Act 2024 also provides for the introduction of cost caps and a new financial assistance mechanism for judicial reviews. Implementing regulations will be needed and the time-frame for its implementation is not clear from the plan.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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