Minister for Housing, Darragh O’Brien is set to temporarily waive residential development levies to cut costs for developers in a bid to urgently increase housing supply.
As the Irish Examiner reports, the Minister will bring a memo to Cabinet with three key changes to accelerate tackling the housing crisis
Developers in cities could save thousands of euro as the tax they pay to local authorities will be waived for a period of time, potentially up to three years, senior Government sources indicated.
Conditions are expected to apply to the move such as commencements should begin this year with the development built within three years.
A senior source said this represents an “immediate way” to cut costs for developers, who claim building has become unviable due to the soaring cost of materials.
The levy applies to developers differs across the country. In Dublin City Council developers pay almost €114 per sq m for the development of a residential property.
The funds raised are used by local authorities to pay for public infrastructure such as footpaths. It is understood the State will step in with funding as a result of the revenue lost because of the move.
Mr O’Brien will also seek approval to offer a cost rental subvention scheme for developers between €120,000 and €150,000, to “unlock” stalled developments for cost rental purposes.
The Government hopes this will see 4,000- 6,000 apartments and homes come on stream.
A third measure will see changes to the Croí Cónaithe fund, with grants of up to €50,000 for vacant properties and €70,000 for derelict homes.