“Development fee waiver extension essential for new home builds” - Mayo TD
A Fine Gael TD is calling for the extension of the government’s temporary development fee waiver scheme and the refund of Uisce Éireann water and waste water connection charges.
Deputy Dillon voiced the ongoing need to extend the waiver on development levies, which have been a significant measure in reducing housing construction costs and ensuring more houses are built.
He stated, “We have seen significant success with the introduction of the development charges waiver and the water connection charges refund scheme which has reduced house building costs by an average of €12,500 per home. This is a substantial saving that has boosted the delivery of new housing supply and address cost and viability issues faced by the construction sector.”
Deputy Dillon further explained, "The waiver and refund scheme has proven to be effective, as shown by the 21% surge in commencements in 2023, leading to over 32,800 housing units.
He pointed out, “The data is even more promising as it shows a record-breaking 7,056 new homes were started in the first two months of 2024, signifying a significant acceleration in the sector.”
Deputy Dillon underscored the financial benefits, stating, “By absorbing the costs of local authority section 48 development contributions and refunding of Uisce Eireann water and waste water connection charges, the scheme significantly alleviates the financial burden on developers. This incentive is vital for sustaining the momentum of development, especially in uncertain economic times.”
“Deputy Dillon noted, “The growing awareness and support of this initiative among Mayo residents, developers, and the entire construction sector underscore its advantages.
Particularly, the initiative has had a direct and appreciated impact on individuals and families building single-unit homes, simplifying their pathway to home ownership. This is in addition to numerous large-scale developers who, despite facing escalating construction costs and material challenges, have found value in the initiative.’”
He concluded by emphasising the need for a quick decision by Minister O’Brien and the government, as the waiver and refund scheme, which was first introduced in April 2023, is due to expire next month.
He believes that the government action to activate the delivery of more homes is working, however, they need to guard the progress that is being made and ensure the upward trajectory continues.