A Clare developer insists the incoming concrete levy will drive an upward trend in the county’s housing prices.
The tax is due to come into effect in September to part finance a redress scheme for homeowners affected by Pyrite and Mica in Clare, Limerick, Mayo and Donegal.
The Government plans to introduce a 5% levy on concrete blocks and pouring concrete from September with the intention of raising around 32 million euro over twelve months.
This will finance 15% of the Enhanced Defective Block Redress Scheme, which offers grants of up to €420,000 per dwelling to repair or rebuild them.
Around 1,000 homes in Clare will be covered under the scheme.
It’s feared though, that the tax could add an additional 1,285 euro onto a three-bed property, which according to the latest myhome.ie report published this week, now stands at 235,000 euro on average in this county.
A prominent Clare Developer believes the knock on effect of the levy will be penalising those attempting to get on the housing ladder.
Larry Brennan of Woodhaven Developments LTD in Ennis is warning the inevitable increase in material costs will lead to a drop off in standards of the future finished product.
The Taoiseach has indicated that a similar levy may be introduced to supplement a redress scheme for occupants of defective Celtic Tiger Era Apartments.
A previous inspection identified over 100,000 apartment and duplex units nationwide constructed between 1991 and 2013 not to have met building standards.
Over 240 such properties at the Brú Na Sionna complex in Shannon are among those with serious fire flaws and the cost of carrying out remedial works for these residents alone is estimated to be in the region of 4 million euro.
However, Leo Varadkar insists there will be retrospective grants to recognise any homeowners paying the fee.
You can listen to the full interview below.
