Extra measures agreed by Cabinet this week will drive down building costs in Westmeath and speed up home building, claim local politicians.
The news has been welcomed by local politicians, with Minister of State, Peter Burke TD, saying that the provisions should make home ownership more achievable.
“There are three strands to these new measures, which will make home ownership more affordable for many again.
“Thousands of private and public homes are being built but we need to do more, we also need to support families, couples and single people who are self-building. People can receive the Help to Buy grant on top of the reduction in levies.”
Three strands
Introduced under the Housing for All plan, the measures comprise three main factors; reducing the cost of construction, increasing the pace at which vacant and derelict properties are renovated for new housing and Government financing of the construction of affordable apartments under Cost Rental.
The plans to help reduce the cost of construction involve scrapping the development levies required to connect new homes with roads, water and other services and subsidising development levies. This measure is estimated to save up to €12,650 per home on average. This will cut the cost of building a home and will apply for a limited time only to act as an incentive. The standard costs of development levies can be extremely expensive to those self-building in the countryside especially.
The second measure of increasing the pace at which vacant and derelict properties are renovated for new housing, incorporates the announcement of an increase of the Vacant Property Refurbishment Grant which was announced on the same day. The grant previously saw a figure of €30,000 to €50,000 to eligible buyers and owners of derelict or vacant properties, this number has now increased from €50,000 to €70,000 and the scope will cover homes built up to 2007 and will include properties available to rental as well as owner occupied.
The third introduction is offered only as a subsidy for a limited time only, with the measure intended to speed up construction by breaking ground on thousands of affordable apartments to rent which have planning permission, which are not being progressed. The Government has agreed to commit up to €750 million via the Land Development agency and other providers, as such it is estimated that under this measure, 4,000 to 6,000 affordable apartments will be created.
Projected impact of newly introduced measures
“The refurbishment grant also will be a significant assistance to rural dwellers who can now avail of a €70,000 grant to do up old cottages or derelict buildings. These additional measures will make it cheaper to build and refurbish a home. It will speed up new home-building and drive down costs across the board,” said Minister Burke, adding that scepticisms of the Housing for All scheme is unwarranted as it is ‘working’.
“Housing for All is working. 30,000 new homes were built last year - ahead of target - and up from just 4,500 ten years ago. We can all see evidence of new construction around us in Westmeath with a number of building sites now active across our towns. Around 400 people per week are now buying their first home. Fine Gael set up a special Help to Buy Scheme to help first time buyers with a deposit, and our First Home Scheme helps buyers to bridge the gap and close the deal on a home.
“I expect the additional actions announced today will have an immediate impact and will increase the number of homes built in Westmeath over the coming years. It should address the difficulties around unactivated planning permissions and might open up options to people who previously might have discounted the idea of taking on a vacant or derelict property, making the best use of our existing housing stock.
“Building a mix of public and private housing and restoring a strong rental sector is the top priority now, giving everyone the opportunity to live their lives in the security of their own home. These extra measures give people more options, more opportunity and more hope for the future.”
Welcome action
Minister Burke was not the only local politician to welcome these measures, with Robert Troy TD, saying they will add a massive boost to rental stock in Westmeath.
“I’m very pleased to see these additional initiatives and measures to support the Housing For All plan which is beginning to deliver for people across the country.
“This will be a massive boost to our rental stock and will put downward pressure on rental prices across the country.”
