Thomas Lyons 
The Irish government has recently announced new measures aimed at reducing the cost of building and refurbishing homes, including a temporary suspension of development levies required for connecting new homes with roads, water, and other services. Senator Pat Casey has hailed this move as a “significant boost” for rural Ireland, where thousands of homes are expected to benefit from the waiver.
The temporary development contribution waiver arrangements will apply for one year to all permitted residential development that commences on site between April 25, 2023, and April 24, 2024, and is completed not later than December 31, 2025. This means that the waiver arrangements will be applied irrespective of the date of planning permission for residential development availing of the scheme, according to the Department of Housing, Local Government, and Heritage. Moreover, Uisce Eireann (Irish Water) water and waste water connection charges for all permitted residential developments will also be rebated, the department confirmed.
Senator Casey lauded the move, saying that it will make it more affordable for people to build and own their own homes. He also predicted that over 10,000 one-off houses will be completed in the country over the next two years, thanks to the suspension of development levies. “This move is a further significant boost to rural Ireland, which is thriving in terms of employment and population growth. The removal of development levies will encourage more people to stay and live in rural Ireland,” he said.
The senator cited data from 2021 and 2022, which showed that there were a total of 20,553 and 29,851 completions, respectively, with 23% and 18.5% of these being one-off houses. He said that the removal of development levies will support these one-off houses, which are prevalent in rural areas.
The reduction in the cost of construction is another measure that the government has announced to support the housing sector. The Department of Housing, Local Government, and Heritage has introduced a new standardised costings system for social housing and affordable housing projects, which will help to reduce the cost of construction. The government has also increased the maximum grant available for refurbishing homes, from €15,000 to €18,000, to support homeowners who want to improve their properties.
The government’s move to reduce the costs of building and refurbishing homes has been welcomed by various stakeholders in the housing sector. The Irish Home Builders Association (IHBA) has praised the suspension of development levies, which it said will help to make housing more affordable for people. “The temporary suspension of development levies will help to reduce costs and make housing more affordable. This is a positive step towards addressing the housing crisis,” said James Benson, Director of the IHBA.
Similarly, the Construction Industry Federation (CIF) has welcomed the government’s efforts to reduce the cost of construction. “The introduction of a standardised costings system for social housing and affordable housing projects is a positive move that will help to reduce the cost of construction. We also welcome the increase in the maximum grant available for refurbishing homes, which will support homeowners who want to improve their properties,” said Tom Parlon, Director General of the CIF.
Overall, the government’s new measures to reduce the costs of building and refurbishing homes are expected to provide a significant boost to the housing sector, particularly in rural areas. The temporary suspension of development levies and the reduction in the cost of construction are likely to make housing more affordable for people and encourage more people to stay and live in rural Ireland.
