Chartered Surveyors welcome extension of Help-to-Buy scheme to 2029 but say similar longer-term commitment is required for levy waiver and utility rebates
“Infrastructural shortcomings have acted as a brake on our ability to ramp up supply and contributed to a serious housing bottleneck….. the long called for infrastructural investment is very welcome”
SCSI described the extension of the relief for pre-lettings expenses as under-whelming and highlighted the greater need for rental reform to improve investment in the buy-to-let sector
Tuesday, October 1st, 2024: The Society of Chartered Surveyors Ireland has welcomed the extension of the Help-to-Buy scheme for first-time buyers to 2029. In its pre-budget submission, the SCSI had called for the measure to be put on a longer-term footing, highlighting that this would bring more clarity and certainty to first-time buyers and the development sector.
However, the SCSI President, Kevin Hollingsworth, said the Government should have gone further and announced the removal of levies and utility charges on a longer-term basis.
“We need to drive down costs and ramp up supply to get to grips with increased housing targets while addressing the affordability gap. We believe these levies and charges should be suspended until housing completions exceed revised targets. Help-to-buy will play an important role in bridging the affordability gap between what people can afford and what houses cost to deliver. Recent SCSI research found that couples on good salaries had to bridge a gap of up to €78,000.”
Infrastructure
Mr Hollingsworth said the SCSI welcomes Budget 2025’s commitment to invest in badly needed infrastructure projects, which are vital for servicing new housing.
“Infrastructural shortcomings have acted as a brake on our ability to ramp up supply and contributed to a serious housing bottleneck. The government’s decision to fund multi-year budgets and to invest in key infrastructural projects has been long called for and is very welcome. Allocating the Apple tax and AIB share proceeds to the LDA, Irish Water, and Eirgrid makes sense in the long term, but ensuring the taxpayer gets value for money will be key.”
Rental Market
Turning to the rental market the SCSI said that while renters would welcome the €250 increase in renter’s tax credit to €1,000, landlords would be underwhelmed by the extension of the relief for pre-letting expenses to 2027.
Mr Hollingsworth said it was disappointing the Government had not moved to address fundamental flaws in the rental market, in particular, the SCSI’s proposal of ‘a rental court’ to deal with serious disputes between tenants and landlords.
“The current system for handling rental disputes run by the Residential Tenancies Board is overly complex and takes far too long. The funds are there now to support the RTB in setting up such a court and this would have brought long-term benefits to tenants and landlords. For several years landlords have been leaving the market because of complex rental regulations and the high risks involved in renting a property. Only when we address these issues will existing landlords stop leaving and new ones start investing in the market.”
Renovations & Retrofitting
The Minister announced €680m towards affordable housing schemes, including additional grants under the Vacant Refurbishment Property Grant Scheme. The SCSI had called for introducing a feasibility grant for people looking to renovate a vacant or derelict building. It
argued that such a grant would ensure the best funding allocation and approach to full unit renovation. It had also called for payments to be made available earlier in tranche payments.
Mr Hollingsworth said, “Considerable progress has been made over the last few years concerning renovating vacant and derelict buildings. However, introducing a feasibility grant, as they have in Scotland, would be a valuable support to people considering such projects. Such a grant would also ensure that funding only goes to viable projects, thus safeguarding public funds. Currently people have to wait until the project is complete to receive their funding. A system of staged payments would alleviate that pressure.”
“Making retrofitting more accessible was one of the reasons we proposed the introduction of tax incentives for homeowners. While grants are available, many homeowners will not have the funds to embark on this kind of project, which can cost anywhere between €20,000 to €80,000. In Italy, homeowners can avail of tax incentives with repayments linked to energy savings. We believe such a scheme would make retrofitting more appealing to many homeowners.”
For media queries please call the SCSI at (01) 6445500 and ask for Patrick King.
About the SCSI
The Society of Chartered Surveyors Ireland (SCSI) is the independent professional body for Chartered Surveyors working and practising in Ireland. It works in partnership with the Royal Institution of
Chartered Surveyors (RICS), the pre-eminent chartered professional body for the property, land and construction sectors around the world.
The SCSI and RICS act in the public interest: setting and maintaining the highest standards of competence and integrity among the profession; and, providing impartial, authoritative advice on key issues for business, society and governments. The SCSI, which has its headquarters in Merrion Square in Dublin, has over 6,500 members across the 12 surveying disciplines. For more information go to https://scsi.ie