Development levies for housing could be abolished temporarily under plans to be considered by Cabinet tomorrow.
The measure, yet to be approved, is designed to help increase “near-term delivery” and will apply for a set time period.
Savings to be gained from the abolishment of the development levy will vary depending on where the construction takes place.
The amount at which such levies are charged is determined by individual local authorities.
In the Dublin City Council area, for example, a levy of €113.82 per square metre applies to residential developments, meaning thousands of euro could potentially be saved.
The levy contributes towards the provision of public infrastructure to facilitate construction.
If the Cabinet approves the measures tomorrow, projects that commence after that decision will be able to avail of the incentive.
Also included in the plans to be brought to Cabinet is a proposal to increase the grants available to renovate vacant homes.
The measure is designed to address the rising cost of building materials.
The grant scheme is set to be expanded to include homes which were built before 2007. At the moment, it only applies to homes built before 1993
Property owners can qualify for a grant of €30,000 to refurbish a vacant home, but if it is derelict, a grant of up to €50,000 is available.
It comes as Taoiseach Leo Varadkar signaled that the Government will look at financing the building of apartments where tenants would be offered affordable rents.
”Government is panicking’
Sinn Féin leader Mary Lou McDonald said a massive scaling up in the delivery of affordable housing and social housing is needed.
“What we have is a Government who still don’t appreciate, much less respond to the scale of that challenge.
“So, we’ll see what they bring forward tomorrow. I mean, the test of all of this will be whether or not housing becomes affordable, whether or not housing becomes available, and I for one have seen nothing so far to suggest the kind of step change that’s needed at this time.
“I see a Government that is now, I think, panicking because time is running out for them. I see them tinkering around the edges but not addressing the central and fundamental issue, which is much higher scale delivery of affordable housing and social housing.”
Article Source – Cabinet to consider abolishing development levies temporarily – RTE.ie