British homes are third of price

THE cost of building a new home is three times cheaper in Britain than in Ireland, a conference was told yesterday.

Gerry McCaughey, chief executive of timber frame manufacturers Century Homes, said a detached 800 sq ft three-bed family home can be built for €90,000 (stg£60,000).

However, he told a conference at Britain’s Offsite 2005 show, that land values in Ireland for private housing see builders pay from €50,000 to €150,000 for individual plots. He said VAT and local authority levies are among other costs, while builders’ real profit margins are not revealed.

Mr McCaughey pointed out that new homes in Britain carry a 0% VAT burden, compared to 13.5% in Ireland, pushing the average price of a new house here to €300,000.

The affordable housing initiative, spearheaded by British Deputy Prime Minister John Prescott, demonstrates how modern methods of construction can slash house building costs and provide high-quality affordable homes.

The display house, finished on site in just three weeks, shows how off-site building and eliminating wet trade and weather variables, as well as reduced labour inputs, can deliver guaranteed and low-cost housing, according to the outspoken house frame building boss.

Mr McCaughey said the certified €90,000 cost of their display home still allowed for a profit margin both for the house builder and for Century Homes, as well as all labour costs.

“The British Government’s impressive track record of embracing Modern Methods of Construction (MMCs) highlights the appalling record of failure of innovation in housing by the Irish Government which has been nothing but contemptuous of any building method other than concrete,” said Mr McCaughey, noting “the British Government has shown a commitment to putting its citizens first, the Irish Government puts the concrete industry and vested interests first”.

“Maybe the Irish Government could follow the British Government’s lead and take VAT off houses,” he suggested.