Will state fund boost development?
Proposals have been put forward to provide loans to developers to help kick-start the house-building sector.
In today’s Irish Independent a report says the Government is being asked to consider establishing a fund to help developers similar to the Large Sites Infrastructure Programme in the UK.
The well-documented problems in the housing sector have led to a situation where demand far outstrips supply, with little sign that major development will begin in earnest over the foreseeable future.
A reduction in VAT on residential development is one solution also being considered.
According to the report “If the Government waived development levies, and eliminated VAT on residential construction, it could result in an overall drop of 25pc.”
In a recent issue of Construction CIF Vice President Dominic Doheny said building costs were so high it simply made no economic sense to commence devlopment.