My Department assesses, approves and records local authority social housing delivery on a project basis, rather than on the basis of individual unit types.
SHIP-funded construction projects by local authorities must, like all publicly-funded construction programmes, comply with the Infrastructure Guidelines (Public Spending Code) and Capital Works Management Framework. My Department periodically issues Basic Unit Costs (BUCs) for each local authority area, for use as a key benchmark for the development and costing of scheme designs at capital appraisal stage. While not a record of actual delivery costs, BUCs are based on an analysis of returned data from tendered social housing schemes over an extended period and updated based on published tender index information as required.
To monitor tender cost trends and to inform BUC levels, my Department analyses the tender data for the construction cost element of new build schemes approved under the SHIP & CAS four stage approval processes for each unit type, where sufficient information is available to allow such costs to be extrapolated and where the information available is appropriate for comparison purposes.
Outlined in the table below are average construction costs (incl. VAT), recorded as part of the aforementioned analysis for projects tendered in 2024 (1-4 bedroom houses and apartments).
The table also sets out the range of average unit costs (across different projects). The range of costs recorded vary, depending on design, mix of unit types (e.g. bedroom numbers, apartment/house); and on the level of abnormal requirements for each scheme, for instance existing site conditions, demolitions, service diversions, site access requirements. Average abnormal costs are also separately identified in the below table.
SHIP Construction 2024
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2024
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Construction Costs (incl. abnormals)
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Construction Costs (incl. abnormals)
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Abnormal Costs
|
Abnormal Costs
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|
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Average Cost Per Unit €
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Range of Costs per Unit €
|
Average Cost Per Unit €
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Range of Costs per Unit €
|
|
Overall (1-4 beds)
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323,994
|
205k - 460k
|
39,702
|
3k - 123k
|
The costs in the above table relate to the construction element only of the all-in delivery cost. Other items that make up the all-in total include:
• Design/technical fees: Design fees vary from project to project, depending on the location, size and complexity of a scheme (and depending on whether design services are provided by a local authority in-house or via external appointment). As a guideline/indicator, design fee are generally expected to range between 7.5% to 12.5% of construction costs.
• Land cost: Land costs will vary significantly from project to project, depending on location and ownership status (i.e. land costs could vary from existing local authority land at no cost to land purchased at market value).
• Utilities: Connection fees for Irish Water, ESB, gas, etc. As a guideline/indicator, utility connection costs are generally in the order of €7k per unit.
• Other Costs: Other items that make up the all-in delivery cost can include site investigations/surveys, archaeological requirements, Percent for Art contributions - and will vary from scheme to scheme.
Cost information on the delivery of social homes through the various construction streams, is collated by my Department at development/project level rather than at individual housing unit level. The cost of constructing new homes is dependent on a range of variables, such as the location, the scale of the development and the size and type of the homes involved. As such, the limitations of using average cost data should be noted.
The table below sets out the average cost per unit in 2024 of social housing across a range of programmes.
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Funding
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2024 Average Unit Cost
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|
SHIP turnkey
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€371,257
|
|
CAS construction
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€294,709
|
|
CAS turnkey
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€250,981
|
|
Local Authority Part V
|
€304,679
|
|
PPP
|
N/A
|
|
Funding
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2024 Average Capital Outlay Approved per unit (€)
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2024 Average CALF Approved per unit (€)
|
|
CALF construction
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€421,262
|
€126,048
|
|
CALF turnkey
|
€374,254
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€107,294
|
|
AHB CALF Part V
|
€337,434
|
€94,324
|
Details of state expenditure on the Social Housing Leasing Programme from 2015 up to the end of Q2 2025 can be found on my Department's website at the following link: www.gov.ie/en/department-of-housing-local-government-and-heritage/collections/overall-social-and-affordable-housing-provision/#leasing
Note 1: Delivery does not necessarily occur in the year of approval or spend
Note 2: The CALF figures are based on application details and may be subject to change as the project progresses.
Note 3: Agreement on Part V arrangements are a matter for the local authorities. In some cases the Part V average is affected by delivery of homes that were subject to agreements prior to the current Part V arrangements. Complete details of PART V arrangements are available from the local authorities
Note 4: The information above is calculated using the financial information available to the Department, however data is subject to revision as claims are received from local authorities and final accounts are finalised
Note 5: It should also be noted that much of the 2024 data on costs would have been informed by projects which were originally tendered or priced in 2022/2023.