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Dáil
‹ An tOrd Gnó - Order of Business

Housing construction costs

Summary

Deputy Healy-Rae asked whether taxes, levies and grants could be changed to reduce the cost of building homes, especially smaller ones. The Taoiseach said development levies had already been waived temporarily and the current grants were generous.

The cost of building a new house is somewhere around €400,000 for a young couple or whomever. One third of the actual building cost comprises VAT, other taxes and levies. Will the Government consider doing anything about that?

Would it be possible to increase the first-time buyers grant if people were incentivised to build smaller houses, like we used to do in the 1970s and 1980s. I refer to any house under 1,350 sq. ft in area built at that time. I am not saying that we should base the bar around there, but maybe somewhere in between. People are building houses that range from 2,500 sq. ft. up to 3,000 sq. ft. Every square foot costs somewhere between €250 and €300. This is increasing the cost of houses. People are burying themselves in debt. The Government should incentivise them to build smaller houses by giving them another grant in addition to the first-time buyers grant. I ask the Government to consider doing so.

Comment on this

On costs, we waived the development levies for a significant period. This resulted in unprecedented levels of commencements over the two years prior to this year. The commencements in 2023 and 2024 were significant. There was a massive increase because we waived the development levies for a restricted period. After that, we have had a lower level of commencements. The Government is doing a range of initiatives on housing. Everything is being kept under constant review. I will look at the Deputy's proposal, but the help to buy scheme and the first home grant are quite generous as matters stand. Combined, they give significant supports to first-time buyers. We will certainly examine the proposal.

Comment on this

The waiving of the levy is gone now.

Comment on this
Verona Murphy An Ceann Comhairle Independent

It is not a back-and-forth, Deputy.

Comment on this