Builders warn levy will lead to price rise

The Irish Home Builders Association has claimed that the cost of new houses could rise by up to €20,000 if local authorities approve plans to increase development levies by up to one-third.

The IHBA said if the levies were increased, builders would add around 5% to the price they charge for houses.

It said the additional cost would also attract VAT at 13.5%, which builders would then pass on the buyer.

The IHBA has called on local councillors to vote against the proposed increase in levies, claiming they would place additional burdens on first-time buyers in particular.