The Daily Star Ireland
Minister for Finance Paschal Donohoe has firmly opposed the idea of reintroducing broad tax reliefs for developers, arguing that such incentives, reminiscent of those from the Celtic Tiger era, proved to be excessively costly and difficult to target effectively. Speaking from Brussels, he emphasized that previous tax breaks had significant financial consequences and that he would strongly advise against their reinstatement.
Despite this stance, Donohoe reiterated the government’s shared commitment to accelerating home construction and addressing the country’s pressing housing needs. He stressed the importance of maximizing existing infrastructure, ensuring adequate planning permissions, and making more land available for residential development. He also defended ongoing policy measures, such as the Help to Buy and Shared Home Equity schemes, as productive solutions that should continue to be supported.
The Minister’s comments come in the wake of recent statements by Taoiseach Micheál Martin, who suggested that the government must attract greater private investment into the housing sector, acknowledging that the State alone cannot meet the current demand. He warned that some of the necessary decisions to achieve this might prove politically challenging.
Cabinet Discussions on Housing Priorities
The Cabinet Committee on Housing is set to meet to outline the government’s immediate priorities before the release of a comprehensive housing strategy later this year. Among the key discussions will be proposed changes to the National Planning Framework, allowing local authorities to designate more land for housing projects.
Additionally, the government is expected to approve an additional €450 million in funding to accelerate the construction of social, affordable, and cost-rental housing in 2024 and 2025. There is also a push to introduce stricter regulations on short-term letting platforms, such as Airbnb, through the Short-Term Letting and Tourism Bill, which would mandate property registration and adherence to planning guidelines. The government hopes that these regulations could return as many as 12,000 properties to the long-term rental market.
Rural wastewater treatment has been identified as a key issue impeding housing development, with Tánaiste Simon Harris emphasizing the need for action to remove this barrier. The committee will also explore ways to increase apartment construction in urban areas by lowering building costs, promoting innovative construction methods, and introducing standardized design plans.
Additionally, there is growing momentum behind the proposal to establish a Strategic Housing Activation Office, tasked with fast-tracking home construction by addressing infrastructure bottlenecks that slow down development.
Social Democrats Challenge Government Housing Policies
Meanwhile, the Social Democrats have labeled the government’s current housing strategy a failure, calling for drastic action to curb corporate investors from bulk-buying residential properties. The party plans to propose a 100% stamp duty rate on bulk home purchases in the Dáil, effectively banning the practice.
Social Democrats TD Rory Hearne has urged the government to consider alternative approaches to solving the housing crisis, drawing inspiration from France’s housing model. Speaking on national radio, he called for a range of reforms, including maintaining rent caps and expanding rent pressure zones. He criticized the government for even contemplating tax incentives similar to those used during the Celtic Tiger years, warning that such policies previously contributed to economic instability.
As the government continues to refine its housing strategy, tensions remain high between policymakers advocating for increased private sector involvement and those pushing for stricter regulations to protect renters and homebuyers.
