SCSI Pre-Budget Submission 2022: Affordable, Viable & Accessible
SCSI Pre-Budget Submission 2022: Affordable, Viable & Accessible
SCSI Pre-Budget Submission 2022: Affordable, Viable & Accessible
[vc_row][vc_column width=”2/3″][vc_column_text]The impact of Covid-19 on our housing sector, especially as a result of restrictions on construction, has been profound, and the increasing imbalance between housing supply and demand is now more acute than ever.
The housing supply shortage remains a critical concern. Despite last year’s budget allocation of €5.3bn to the Department of Housing, Local Government and Heritage (the highest budget allocation received), the level of new housing supply during this period was slightly over half of what is required each year. The SCSI has carried out several studies on the viability and affordability of new housing for purchase and rent. Our most recent research, a joint survey from the SCSI and the Central Bank of Ireland, highlighted that property prices nationally are set to rise by 4-6% in the next 12 months. This is on top of continuous property price growth over the past seven years, where property prices are now close to 90% of pre-recession levels in 2012/13. The SCSI has assessed that if new housing output is maintained at current levels, it will be approximately 2031 before new housing supply and forecast demand will reach equilibrium.
Due to this critical societal challenge, our 2022 pre-Budget submission focuses on a single theme: affordable and viable housing delivery.
Our submission is divided into two sections:
1. Increasing the supply of homes.
2. Affordability of residential property.[/vc_column_text][vc_empty_space][vc_empty_space][/vc_column][vc_column width=”1/3″][vc_single_image image=”29607″ img_size=”full” alignment=”center”][vc_btn title=”Read the report” color=”warning” size=”lg” align=”center” button_block=”true” link=”url:https%3A%2F%2Fscsi.ie%2Fwp-content%2Fuploads%2F2021%2F08%2FSCSI_PreBudgetSubmission_Final.pdf”][vc_empty_space][vc_empty_space][vc_empty_space][vc_row_inner][vc_column_inner width=”1/2″][vc_tweetmeme share_via=”SCSISurveyors” share_hashtag=”#budget2022 #affordablehousing” large_button=”true”][/vc_column_inner][vc_column_inner width=”1/2″][vc_facebook type=”button_count”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]
Key Recommendations
[vc_row][vc_column width=”1/2″][vc_column_text]Double the allocation of funding for housing to €7bn to bring more supply to the market. Based on current production levels, this would have the potential to deliver approximately 18,000 units per annum (page 13).
To incentivise the development of affordable homes, make more development land attractive for sale. Introduce a rebate on the residential development land Capital Gains Tax rate from 33% to 8% for a defined period but aimed at the delivery of affordable homes within a specific timeframe (page 11).
Allocate funding for the introduction of a Development Land Register (page 8).
Allocate separate and dedicated funding streams in line with the establishment of the circular economy protocol to address material quality, material appropriateness for reuse, and regulations and guidance for the sector to embrace a reuse policy for new constructions and renovations (page 10).
Continue to monitor the administration of tendering for public works, to ensure that the process of tendering is rigorous but not so administratively burdensome that it excludes small businesses or new entrants into the Irish construction sector (page 13).
Further extend the Living City Initiative/Bringing Back Homes. The Living City Initiative is due to run until December 31, 2022. Given the percentage of vacant buildings in Ireland, significant consideration should be given to further extending this scheme and to resourcing local authorities accordingly (page 14).
Establish a longer-term strategy with targets for the Help to Buy scheme, so that commitment regarding the lifetime of the scheme is clear to both consumers and developers when planning new housing schemes. Continued support of the Help to Buy scheme to assist first-time buyers is important and should remain in place. The introduction of initiatives to assist those looking to become homeowners, such as the Shared Equity Loan, are to be welcomed, subject to their details (page 18).[/vc_column_text][vc_empty_space][/vc_column][vc_column width=”1/2″][vc_video link=”https://www.youtube.com/watch?v=dacMNvylEEc”][vc_empty_space][vc_column_text]Implement changes to the Fair Deal scheme to incentivise the renting or sale of assets of the nursing home resident, to assist with providing additional supply of homes to the rental market (page 12).
Avoid a lending-only approach to retrofits and seek to adopt a tax-back option for applicants (page 15).
Develop a panel of experts for both consultancy and trades for retrofitting to protect our built heritage and ensure that works are carried out to a high standard guided by technical guidance (page 16).
Invest in funding and training initiatives to assist in creating optimal entry into the construction sector and the necessary upskilling of the sector to meet Ireland’s sustainability objectives (page 9).[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]
