The number of planning applications submitted to Donegal County Council has almost doubled in the last three years. The surge comes before the implementation of the draft development plan for the county due next month.
The plan would prevent anyone, apart from immediate relatives of families already owning homes, from building in remote areas of the county. It would also restrict the building of holiday homes in scenic or coastal areas.
Last year the number of applications was 5,308, while in 1997 there were 2,271. The figure to the end of May this year was 2,502.
Another factor in the increase in planning applications is the difference in the exchange rate between the Irish and British pounds, which has meant people from Northern Ireland can buy holiday houses in the Republic at effectively substantial discounts. Mr Joe Reynolds, a Letterkenny auctioneer, says the majority of holiday homes he sells are to people from across the Border.
Mr Bernard McGuinness, a Fine Gael councillor who lives in Culdaff, 20 miles from the Border, says applications for a further 180 houses have been made for the village, which currently has about 60.
The Northern peace process is also considered to have contributed to the cross-Border interest.
Commenting on the consequential increase in demand for the services of architects, auctioneers and builders Mr Paul Doherty, a Donegal town architect, says the shortage of builders has had the effect of late pricing, which results in even higher prices for buyers.
Joe Reynolds says there has been a 50 per cent increase in house prices in Letterkenny and holiday homes around Donegal.
But local people are concerned at increased prices for land. "Builders are delighted, but young couples are finding it difficult," Mr McGuinness says.
There have been objections to the development plan because of fears it will inhibit the local population from building, according to Ms Gaye Moynihan, an engineer with the council. However, she says the long-term hope is that it will reduce the rate of increase of demand on housing.