15 05 2025 Insights Real Estate

Ireland’s Revised National Planning Framework & Housing: A Blueprint for Growth to 2040

Reading time: 5 mins

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Introduction

The National Planning Framework (NPF) is the long-term, 20-year strategy for strategic planning and sustainable development of our urban and rural areas to 2040, with the core objectives of securing balanced regional development and a sustainable ‘compact growth’ approach to the form and pattern of future development.

Background

The original NPF, introduced in 2018, replaced the National Spatial Strategy and served as Ireland's overarching spatial planning and development strategy. In accordance with the Planning and Development Act 2000 (as amended), the Government initiated the first revision process in June 2023 to reflect changes in demographics, policy priorities, and environmental considerations.

The revision process was comprehensive, involving public consultations, stakeholder engagements, and environmental assessments. A draft revision was published in July 2024, followed by a public consultation period that garnered 272 submissions. Feedback from these consultations informed the final draft, which was approved by the Government on 8 April 2025 and subsequently by the Oireachtas on 30 April 2025.

The NPF, together with the National Development Plan 2021 (NDP), combine to form Project Ireland 2040, the overarching planning and investment framework for the social, economic and cultural development of Ireland.

The NPF is a document that is of utmost importance for planning policy in Ireland as it lays out the Government’s high-level, strategic plan for future development.

Key Updates in the Revised NPF

Population and Housing Projections

The revised NPF anticipates a population increase to approximately 6.1 million by 2040, with a high migration scenario projecting up to 6.3 million. To accommodate this growth, the framework sets an ambitious target of delivering an average of 50,000 new homes annually, aiming to reach 60,000 per year by 2030.

Albeit ambitious, the NPF strategy is mostly indistinguishable. The revised NPF makes reference to actions of the Government in the past seven years, which in turn offers a more solid plan for how Ireland might actually achieve this.

With regard to the energy efficiency of buildings, a new paragraph in Chapter 9 focuses on the importance of property retrofitting and heightened energy efficiency standards for new buildings. This is aligned with the general direction of travel at national and EU level towards improving the energy efficiency of buildings as a method of emissions reduction.

Chapter 9 refers to the National Heat Study Report 2022 which identified that a combination of district heating, biomethane and heat pumps will play a vital role in fast decarbonisation of the heat sector. Chapter 9 acknowledges the “key role” that district heating can play in reducing emissions, particularly in conjunction with the delivery of largescale development. It also refers to the target identified in the Climate Action Plan 2023[1] of up to 2.7TWh of district heating installed capacity across both residential and commercial building stock by 2030. This is an increased level of support of district heating compared to the previous NPF.

Regional Development and Urban Planning

Emphasizing balanced regional development, the NPF continues to promote the concept of 'compact growth' to ensure sustainable urban expansion. This approach seeks to optimize land use, reduce urban sprawl, and enhance the quality of life in both urban and rural communities.

Implementation and Local Authority Engagement

 The revised NPF provides clear guidance for local authorities to update their development plans in line with national objectives. It emphasizes the need for timely zoning of land for residential, employment, and other purposes, ensuring that local plans are responsive to current and future needs.

Conclusion

Although the updated NPF may not introduce a completely novel approach to infrastructure, it is expected to significantly influence the strategy for developing and approving infrastructure projects that are essential for achieving the State's goals in various other sectors.

The updated NPF serves as a critical tool for guiding Ireland's development over the next 15 years. By setting clear targets and providing a cohesive strategy, it aims to address the housing crisis, support economic growth, and ensure environmental sustainability. The successful implementation of this framework will require coordinated efforts across all levels of Government, engagement with stakeholders, and continuous monitoring to adapt to emerging challenges and opportunities.

Sources

Government of Ireland, ‘National Planning Framework First Revision April 2025’. Available at: https://cdn.npf.ie/wp-content/uploads/National-Planning-Framework-First-Revision-April-2025.pdf [Accessed 08 May 2025].

Gov.ie, ‘Government Approves Revised National Planning Framework Published 08 April 2025’. Available at: https://www.gov.ie/en/department-of-housing-local-government-and-heritage/press-releases/government-approves-revised-national-planning-framework/ [Accessed 08 May 2025].

KildareStreet.com, ‘Revised National Planning Framework: Motion – Dáil Éireann debate – Wednesday, 30 April 2025’. Available at: https://www.kildarestreet.com/debates/?id=2025-04-30a.272&s=speaker%3A494 [Accessed 08 May 2025].

Mason Hayes & Curran, ‘Revised NPF, WHAT’S New for Infrastructure, 24 April 2025’. Available at https://www.mhc.ie/latest/insights/revised-npf-whats-new-for-infrastructure [Accessed 08 May 2025].

The content of this article is provided for informative purposes only. It does not constitute legal advice. If you have any queries or require expert advice on the changes proposed under the NPF and how it may affect your business, please contact a member of the RDJ Real Estate team.

AUTHOR: Evin McCarthy, Partner | Evan Lynch, Trainee Solicitor

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