Construction BUSINESS

The government has green lit an additional funding injection of up to €2.5 bn for the Land Development Agency (LDA), effectively doubling the agency’s capitalisation to facilitate the construction of numerous homes on state-owned land.

While the approved sum falls short of the initially proposed €6bn, government sources indicate that the LDA did not require the full amount in a single disbursement.

The sanctioned financial package is deemed adequate to cover the initial years of the LDA’s business plan from 2024 to 2028. The €2.5bn figure resulted from discussions between the LDA and the government’s New ERA agency, focusing on the agency’s anticipated needs for 2024 and 2025.

In response to the development, LDA’s Chief Executive, John Coleman, expressed appreciation, stating, “The LDA welcomes the government’s decision to significantly boost the agency’s funding. The additional funds will empower the LDA to commit up to €5bn, enabling the continued delivery of substantial amounts of affordable and social housing through 2025.

Currently engaged in delivering over 10,000 direct delivery homes on state-owned or agency-purchased land, the LDA is also on track to deliver an additional 5,000 Project Tosaigh homes by 2026. With advanced plans to escalate this level of activity, requiring substantial capital investment, today’s decision positions the agency to emerge as one of Ireland’s major housebuilders, whether public or private, throughout its current five-year business plan (2023 to 2028), with significant delivery milestones already underway.”

Source: Irish Construction News