Property & Construction
The property and construction sector remains both a key industry in Ireland’s economy, and a critical component in delivering much-needed infrastructure and solving our housing crisis. The sector faces a number of challenges, including the effects of rent caps, recent cost inflation, high costs of financing, and a complex and costly planning system, which inhibit the potential positive contribution that the industry can provide.
We welcome the minister seeking to address a number of the issues faced by participants in the sector – particularly in alleviating the financial burdens faced by tenants and homeowners (both existing and prospective). We are also keenly aware of the wide range of initiatives introduced and investments made by the Government in relation to housing in recent years – Housing for All, Croí Cónaithe, the Shared Equity Scheme, Cost-Rental Housing, and Project Tosaigh amongst others. This has continued with the allocation of an additional €1.25 billion to the Land Development Agency as part of Budget 2025. These are having a tangible impact on the housing sector, and we welcome further measures to positively tackle the challenges faced by all sector participants.
However, there are significant concerns around a number of measures that the Government has sought to introduce, including the changes to certain stamp duty rates on residential property, the Residential Zoned Land Tax and the draft Zoning Value Sharing Bill. There is a real risk that the implementation of such measures will introduce additional cost and uncertainty around the viability of housing developments and ultimately adversely affect the ability of the sector to support delivery of the infrastructure and housing investments that are urgently needed. We recommend that such measures are carefully considered, in consultation with the industry and practitioners, in order to mitigate against the risk of unintended and adverse consequences.
The measures announced in the Finance Bill in respect of the property and construction sector are set out below.