SCSI welcomes over €5bn in Cap investment for housing delivery and measures aimed at reducing apartment construction costs
But says other input costs such as utility connection charges need to be addressed
Extension of Living Cities Initiative extension to 2030 a positive move
“Landlords will be disappointed at the failure to reduce their tax burden”
Tuesday Oct 7th, 2025: The Society of Chartered Surveyors Ireland has welcomed measures introduced in Budget ’26 aimed at reducing the delivery costs of new apartments and improving their viability.
The SCSI President Gerard O’Toole said that while VAT is a significant input costs for new apartments, other factors such as high utility connection charges need to be addressed.
“An international cost report by the SCSI and Trinity College last year found Dublin to be the second most expensive place to build apartments after Zurich in Switzerland. However, even if VAT rates were reduced to zero – as they are in the UK – Dublin would rank as the fifth most expensive city. So, while reducing VAT is a move in the right direction, we believe other high-cost elements in Ireland such as utility connection charges need to be tackled.”
The announcement of increased funding for key infrastructure was welcomed by the SCSI, which had said that delays and rising costs in securing water, wastewater, and energy connections needed to be addressed in Budget 2026.
Mr O’Toole said, “Ring-fencing multi-annual capital allocations for utilities such as Uisce Éireann and ESB is vital to meeting Ireland’s housing targets. Increased investment in enabling infrastructure is essential to ensure new developments can proceed efficiently and sustainably across the country.”
Additionally, the SCSI said that it was looking forward to examining the detail of the new Derelict Property Tax but noted that it would be administered by the Revenue Commissioners and not local authorities as was the case with the Derelict Sites Levy.
“The SCSI has long supported measures aimed at tackling the scourge of dereliction and if this change leads to the tax being administered in a more efficient and effective manner, it is something we would welcome. In the same way we welcome the introduction of incentives announced in the budget for the conversion of non-residential buildings into apartments and a strengthening of the Living Cities scheme which aims to enhance older homes and businesses” Mr O’Toole said.
Rental Market
Turning to the rental market the SCSI said that while renters would welcome the extension of the renter’s tax credit for another three years landlords would be disappointed at the failure to reduce their tax burden.
In its pre-budget submission, the SCSI had called for lower tax rates for small landlords as well as taxes on long-term vacant residential units to boost rental supply. Mr O’Toole said recent research by the SCSI shows landlords are continuing to leave the market.
“The three top reasons why rental units are coming to the market for sale are overly complex rent legislation, low returns and properties recovering from negative equity. Agents say that sales instructions from landlords make up just under 30% of sales instructions.”
“We believe landlords will continue to leave the market, exacerbating the lack of rental supply, unless they can see better returns and that is why we are calling for increased tax incentives for small landlords. At the same time, we called for taxes to be imposed on long-term vacant residential units as a way of boosting rental supply.”
“We believe introducing supports to unlock brownfield sites and setting targets for local authorities will help promote high-density development in existing built-up areas, ensuring timely housing delivery and better urban planning” Mr O’Toole concluded.
For media queries please call the SCSI at (01) 6445500 and ask for Patrick King.