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Delivering "Rebuilding Ireland"

Key Recommendations

Taxation of housing
      1. Review how and when property is taxed, including income to local authorities from the Local Property Tax and Development Levies, with the aim of reducing development-stage levies and tax costs to house-building, and streamlining application by Local Authorities
      2. Engage with the European Commission to zero-rate VAT on new housing, mirroring the situation in Britain and Northern Ireland, over the short to medium term to achieve affordability
      3. Immediately reduce VAT on housing to 9%, until such time as it is possible to move to a zero-rate VAT position on new housing, to increase affordability of housing and improving Loan-to-Income and Loan-to-Value ratios. Failing this, introduce a rebate on VAT paid by first-time buyers of new homes
      4. Reintroduce mortgage interest relief for first-time buyers or those in negative equity buying residential property in line with the relief that is in place and due to expire in 2017
Social housing
      5. Review and take up options for accessing off-balance sheet private financing for social housing delivery
      6. Introduce nationwide standard interpretation of Part V of the Planning and Development Acts 2000 – 2015
Rental housing
      7. Promote the development of a “build-and-retain” model of multi-family property development
      8. Put investment in rental housing on an equal footing, from a taxation point of view, with investment in commercial property, including full interest relief
      9. Remove PRSI and USC from rental income to encourage private individual landlords back into the market
      10. Undertake an international review of policies which have been developed to assist first-time buyers in sustainable employment but with limited incomes to achieve the goal of home-ownership to assist those unduly affected by the Central Bank loan-to-value and loan-to-income restrictions
Commercial Property
      11. Support IDA Ireland in fast-tracking the delivery of high-quality offices in urban centres
Student housing
      12. Overhaul the VAT treatment of the construction and management of purpose-built student accommodation to promote increased professional investment and provide accommodation which recognises the specific needs of students
Skill shortages
      13. Meet the challenges of capacity in the construction industry through financing upskilling and re-skilling of the long-term unemployed from the sector, and promote further recruitment of both on-site operatives and construction professions

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