Clare’s Construction Industry Federation representative insists the solution to the housing crisis is not just in the cost of building.
It comes after details of the Government’s new 1 billion euro housing plan, which aims to increase stock and drive down the cost of construction, have been confirmed this week.
The cabinet this week approved a major new plan aimed at ramping up the country’s housing supply.
Development levies will be suspended for the next 12 months, which means costs associated with roads, water and other services will be cut, saving builders 12,650 euro per house, on average.
But there’s no measure to ensure this saving will be passed onto buyers.
Government has also committed 750 million euro to the Land Development Agency and other developers to provide between 4,000 and 6,000 cost rental apartments between this year and next.
But Clare’s Construction Industry Federation representative says that will do little to help in this region, as there isn’t the same level of demand as in the bigger cities.
Patrick Keogh, who’s the newly appointed Chair of the Midwest branch of the CIF, says the solution is not just in the cost of building, but also elements like planning, water services, cost inflation and cost of borrowing for the homeowner.
He insists the Government needs to push the First Time Buyers and First Home schemes to make houses more affordable for first time buyers.
The changes also include an extension of the grants available to renovate vacant properties, going from 30 thousand euro to 50 thousand.
But an Ennis-based developer believes that without a reduction in VAT, these grants won’t go far enough.
Ciarán Breen is accusing the Government of giving with one hand and taking with the other.
You can listen to the full interview below.
