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.
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