Surveyors call for examination of Building Regulation costs

image

16 January 2015

Surveyors call for examination of Building Regulation costs

In yesterday’s Irish Times two representative bodies for property professionals recommended that planning and building regulations costs be examined in an effort to reduce them and to increase the supply of new housing to the market. This follows a recent announcement by the National Housing Agency that with just 8,700 new homes built in 2014, an average of 16,000 new homes will be required each year for the next four years to meet demand. The costs associated with house building in Ireland are widely recognised as a barrier to increasing output.

Pat Davitt, spokesperson for the Institute of Professional Auctioneers and Valuers (IPAV) called for an immediate examination of costs associated with new Building Regulations introduced last March, especially in the city, and the reduction of building planning levies to make new home construction more viable in certain areas.

The President of the Society of Chartered Surveyors Ireland (SCSI) urged a review of the planning process and VAT costs in relation to housing. Pauline Daly, President of the SCSI is quoted as saying:

We see a need to streamline the planning process and reduce the VAT rate on new home construction on a temporary basis.

The call for reduced VAT on new homes is echoed by most within the industry, with building costs cited as a major concern. The SCSI were one of the five stakeholder bodies invited to participate in the formation of SI.9 by the Department of the Environment. SCSI members, many of whom are employed directly by builders and developers, are acutely aware that these regulatory costs are making many housing projects unviable.

See full article “Forecasting the market: What’s in store for property in 2015“, Irish Times, January 15th 2014.

Other posts of interest:

Fewer than 90 social housing dwellings completed in 2014

Housing Crisis | Less than 1,000 homes completed in Dublin in 2014

10,500 housing units completed in 2014

Look forward to SI.9 review in January 2015 | Minister Paudie Coffey

Developer-Led projected Sales Price for a Typical House

Soaring house prices and rising rents could damage economy | National Competitiveness Council

1 thought on “Surveyors call for examination of Building Regulation costs

  1. Andrew Alexander MRIAI

    Bureaucratic regulations, duplicated statutory applications and approvals, increased building costs, impending restrictions on bank lending, high levels of consumer debt, an asset management agency whose brief is to restrict supply and ensure that pre-crash assets recoup their sale and rental value, a shortage of skilled labour and a public sector that is only able to deliver 90 new homes per year equals ‘Construction Crunch.’

    Promises are being made. It would be timely to start monitoring (if such information is available) the number of planning approvals going through the system. Before new homes (as opposed to completed ghost estates) get on site they need to obtain planning permission.

    A general election is within sight and while I would not expect the Building Regs forum to take sides in such a contest housing may become a hot political potato. An empirical body of evidence provided by this blog will greatly aid readers in deciding what is real and what is bluster.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *