New Irish homes are being built to “stricter” environmental regulations when compared to new homes across the UK, placing an “extra barrier on developers in terms of cost”. That’s according to a new ESRI study contrasting housing supply in Ireland, Northern Ireland and the rest of the UK.

Stakeholders cited in the report remarked that Ireland has “stricter environmental regulations” than Northern Ireland and England. The ESRI said these “soft costs” such as regulations and standards push up costs more than differences in the price of construction products.

Cost inflation on material products has been sharper in the UK than in Ireland, but costs still remain at a lower level in the UK, according to the report. However, while these are an “extra barrier” on cost, stakeholders noted that it “is more likely that other regions will catch up to Ireland’s environmental standards, rather than revert to looser requirements”.

The minimum specification expected for new developments in Ireland is also leading to increased costs. New houses in Ireland are also larger on average than comparable developments in England.

The report also noted that Dublin apartments have among the highest minimum floor space requirements amongst major European cities.