Call for reduced Vat for new-home builders

Builders who sell new homes at affordable rates should pay reduced Vat, Fianna Fáil has suggested in the Dáil.

During a debate on housing, Fianna Fáil’s Barry Cowen suggested affordable housing was always a “key pillar” of the Government and implored Housing Minister Eoghan Murphy to bring forward a new affordable housing scheme.

Mr Cowen described the housing crisis as a “great national shame”.

Speaking during the housing debate last night, Mr Murphy said he was considering all ideas and seeking the input of as many people as possible.

Earlier, Mr Murphy welcomed the new iCare housing mortgage to rent scheme which will help hundreds of families stay in their homes.

AIB has done a deal with the Irish Mortgage Holders Organisation and iCare House to buy out hundreds of homes from distressed mortgage holders. These houses will then be rented back to the occupants, meaning families and individuals will not be forced to leave their homes.

Mr Murphy said changes made to the mortgage to rent scheme earlier this year mean that more households who are at risk of losing their homes can avail of the support.

He encouraged other housing bodies to consider taking similar action to help a greater number of eligible borrowers.

Mr Murphy, who is due before the Oireachtas housing committee today, said he hoped the scheme will become a “real long-term solution” for the families it was set up to help.

“My department and the housing agency will work with iCare Housing and all the other participants in the scheme to meet the needs of more borrowers who require long-term support with their housing needs.”

Speaking ahead of the meeting, housing committee chairwoman Maria Bailey said members would be quizzing the minister on the housing summit he convened with the heads of each local authority in Dublin earlier this month.

“Members will wish to know if there any ideas or initiatives that arose at the summit that will be included in the action plan and if there any plans to convene further summits,” she said, adding that the committee will be seeking an update on the Action Plan for Housing and Homelessness.

Meanwhile, Sinn Féin is today hosting a conference which will focus on developing a new approach to public housing.

Sinn Féin TD Eoin Ó Broin said the housing system in this State is dysfunctional.

“Decades of under-investment and an over-reliance on the private sector has left thousands of families on social housing waiting lists and thousands more trapped in unsuitable accommodation in the private rented sector. Inflated house prices are ensuring that a generation will struggle to own their own home.”