In this article, Sean Canney, Independent TD, expresses how the cost of building a home is out of control.
The biggest cost in the building of a home are tax, legal costs, development levies, waste, sewerage connection costs and ESB connection charges.
If the government is serious about the cost of building a house, there are some quick steps that can be taken to reduce costs.
A VAT Refund Scheme to the first-time buyer would save 13.50% in the cost of a house. This would save a first-time buyer €36,000 on a €300,000 house.
Furthermore, abolish the development levies paid to the local authorities and fund the local authorities directly from central exchequer funds. This would save first-time purchasers up to €3,500.
Set a maximum fee for Irish Water for sewerage and water connection which again can be up to €20,000 per house.
This is a penal charge, and the government needs to cap this charge at a maximum of €1,500 for sewerage and €1,500 for water.
If the government are serious, they need to take appropriate action to arrest the biggest housing crisis facing our young people.
There is no point in criticising the President of Ireland who spoke about the crisis. It would be far better to reduce the costs that are within the government’s control.
Right now, anyone building a self-build home faces costs in excess of €20,000 before they put a spade in the ground.
It is time for real decisive action by the government.
Ban on sale of turf
Previously Canney, described the proposed ban on the sale of turf as “unworkable”. Here is an extract from a piece he penned on the subject:
We have hundreds of thousands of homeowners who rely on buying the trailer of turf for heating their homes.
We have many householders who purchase turf on the spread, save it themselves and bring it home.
There is no alternative in place to heat their homes, and provide hot water and heating ranges for cooking meals.
Read more on this.