Government may bulk buy apartments before construction

Taoiseach Leo Varadkar said one measure that could be considered by the Government was the 'advance purchasing' of apartments which have already received planning permission in towns and cities

Taoiseach Leo Varadkar: 'If we say to the builder that if you build it, we will buy it or at least we will guarantee a certain price that directs the development and means that it can go ahead and go to construction.'

The Government will examine bulk buying apartments before they are built in a bid to accelerate the supply of housing.

The announcement comes following a housing meeting held in Government Buildings between Taoiseach Leo Varadkar, Housing Minister Darragh O’Brien and stakeholders on Tuesday.

Mr Varadkar said one measure that could be considered by the Government was the "advance purchasing" of apartments which have already received planning permission in towns and cities.

He said there were 70,000 units that have yet to be developed and the State was looking at ways in which it could accelerate construction.

“If we say to the builder that if you build it, we will buy it or at least we will guarantee a certain price that directs the development and means that it can go ahead and go to construction,” he said.

Mr Varadkar said the Government needed to increase its housing targets to take into account the rising population and the number of Ukrainians that will remain in Ireland.

Opposition TDs said the meeting with homeless charities, developers and approved housing bodies was a PR stunt by Mr Varadkar and claimed the State’s Housing for All plan was failing.

Mr Varadkar said the meeting was set up because it was a new year and he was now Taoiseach and he believed it was appropriate to “delve deep” into the housing crisis.

Tax breaks for developers

When asked if tax breaks for developers are under consideration by the Government, the Taoiseach said nothing was off the table at this stage and all proposals would be considered.

Housing for All currently has a target of producing on average 33,000 homes a year but can ramp up to 40,000.

Both Mr Varadkar and Housing Minister Darragh O’Brien said they plan to exceed the target to build 28,000 homes this year but the Taoiseach said a shortfall in commencements would impact the number of homes being built in 2024.

Mr Varadkar said he anticipated the Housing Commission would give the Government advice on whether targets need to be increased.

“And, you know, I think given the rising population, given the fact that a large number of people have come from Ukraine, many of whom will stay, it makes sense to me that we will need to revise upwards those targets,” the Taoiseach said.

Mr O’Brien defended his plan and said there was no other housing plan out there and said it was a “living plan.”

Mr Varadkar said “we need to spend more on housing,” and said he believed other constraints such as limitations to builders and the price of materials would hold the State back on meeting its housing targets.

“But it is clear to everyone in Government that it's not enough. We need to scale up the number of new homes being built every year. I don't think supply on its own will solve this problem,” Mr Varadkar added.

He also said there was no unanimity at Tuesday’s meeting between stakeholders on whether the eviction ban should be extended beyond the end of March and the meeting provided a lot to reflect on.

Mr O’Brien also said he would like to see the €500 tax credit for renters extended into the future but it would form part of budget talks down the line.