Auctioneers urge Govt to reduce VAT for new builds

Auctioneers say VAT must be reduced for new builds in a bid to tackle the housing crisis.

The Institute of Professional Auctioneers and Valuers also says local authority levies on new builds are still extremely high - in some cases costs before a block is even laid can reach up to €80,000.

In a pre-Budget submission today, the organisation says housing policy would be better served by overall co-ordination at Government level.

CEO of the IPAV, Pat Davitt, says VAT on new builds should be reduced to bring down costs across the board.

He said: "The first thing is the VAT situatoin with new buildes, because the price between new builds and second-hand homes at the moment is enormous.

"So if somebody builds a new property, the cost is roughly in the region of €200,000 to €220,000. In most country areas, the price of that property is valued at the moment somewhere in the region of €100,000 to €150,000.

"So there is a massive difference there and ew're trying to bring doen the building costs rather than bring up the price of the houses."