The recovery in the housing sector continues to gather momentum, according to newly published data.

The National Housing Construction Index, compiled and issued by consultancy Link2Plans, found that in the first eight months of the year there had been significant increases in both the number of planning applications and the number of building projects getting under way.

It said that when compared with the first eight months of 2013 nationally, project commencements were up by more than 40 percent, while the number of new planning applications had risen in excess of 12 per cent.

It said that the triple-figure growth in the number of project commencements in the first four months of this year had been replaced with more sustainable but still extremely significant gains.

‘Good news’

Danny O’Shea, managing director of Link2Plans said: “The plus 40 per cent year- on-year increase in project commencements is still an extremely strong result and is good news for the residential construction sector.”

The study said the largest year-on-year gains across the country for project commencements took place in Monaghan, which was up by 115 per cent, Cork, up 79 per cent, Westmeath, up 63 per cent, Donegal, up 63 per cent and Sligo up by 60 per cent.

It said that for the first time in 2014, three counties saw the number of project commencements fall, with Longford down 20 per cent, Roscommon down 3 per cent and Leitrim down 3 per cent when compared with the same period last year.

In the first eight months of the year the number of new planning applications in Dublin increased by 35 per cent. There were also large increases in planning applications in Meath, Wicklow, Kerry, Clare and Cavan.