Development levies ‘adding up to 6% to house prices’

Development levies imposed by local authorities are reportedly adding up to 6% to the cost of new houses and apartments in Ireland.

The levies are imposed on builders to meet the cost of building roads, sewage and other infrastructure for with new developments.

Reports this morning said local authorities took in €546m in such charges last year, compared to just over €110m in 2000 and less than €50m in 1996.

Fine Gael claims councils have no choice but to impose these fees because of a lack of vital funding from the Government.

The party has accused the Fianna Fail-Progressive Democrats coalition of basically imposing a massive stealth tax on home-buyers by making them pick up the bill for local infrastructure.