Fianna Fáil tax-incentive plan for house building criticised

Some experts have criticised Fianna Fáil's plans to give developers tax breaks, saying it would not solve the housing crisis.

Fianna Fáil has suggested that VAT should be cut to 9% for three years and development levies should be reduced to encourage more building.

A repair and lease scheme for vacant units introduced last year has only seen an uptake of seven out of a target of 800.

However, some experts say that it is site prices rather than construction costs that are driving up house prices.

Architect Mel Reynolds says reducing VAT will only make matters worse.

"The danger with using the crisis as a Trojan horse, in a way, if industry does this, when you get a blanket incentive like a VAT reduction applied to the entire country, not only does the scheme in Galway improve in terms of profitability, but your land value in Dublin for your land-hoarders increases by about 25%," he said.

Related Articles

Report shows four times more new houses need to be built in 2018 compared to last year

Government accused of sleep-walking through housing crisis

Housing crisis: Jacqueline, 80, has a solution

Dublin City Council sets up unit to target landlords who leave tenants in slum conditions

More in this Section

Labour MP to introduce Northern Ireland same-sex marriage bill in March

DUP 'unaware' of money for legacy inquests

Fugitive solicitor Michael Lynn loses challenge over DPP assurances in extradition process

Guatemalan mother caught with cocaine-soaked shirts valued at €179k jailed for three years


Today's Stories

€160m Cork docklands plan cleared for development

€22bn green plan but TDs drive diesel

New cancer treatment to reduce radiation risk to heart

Cork one of cities worst-hit if globe heats up

Lifestyle

The biggest cancer killer will take your breath away

Hopefully she had an idea...

Power of the press: Meryl Streep and Tom Hanks discuss 'The Post'

More From The Irish Examiner