Mayo minister confirms extension to development fee waiver for new home builds
THE Minister of State within housing, Alan Dillon, has confirmed an extension of the waiver for local authority development contributions until the end of this year and the refunding of Uisce Éireann water and waste water connection charges until the beginning of October.
Housing Minister Darragh O'Brien brought forward a memo to Cabinet yesterday seeking this extension that was formally agreed.
The measure has been instrumental in reducing housing construction costs and ensuring more houses are built since its introduction back in April 2023.
Said Minister Dillon: “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 substantial saving has boosted the delivery of new housing supply and addressed cost and viability issues faced by the construction sector.”
He added: “The waiver and refund scheme has proven to be effective, as shown by the 21% surge in commencements in 2023, leading to over 32,600 housing units.”
Minister Dillon emphasised the financial benefits these measures provide for developers and residents starting out to build their own home: “By absorbing the costs of local authority section 48 development contributions and refunding of Uisce Éireann 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 months ahead.
“During the first quarter of this year, Mayo saw a record number of residential construction starts with 161 homes, marking a 71% increase compared to the same period in 2023, which had 94 units. This is the highest number of commencements notices for the first quarter since the data series began in 2015.”
Minister Dillon believes 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.
“Supply is key to making progress in housing, and there is real momentum under Housing for All, with record levels of new homes being built, a strong pipeline, and more first-time buyers getting they keys to their own home.”