Dáil Éireann Debate, Thursday - 30 May 2024
112. Deputy Willie O'Dea asked the Minister for Housing, Local Government and Heritage his assessment of the impact of the development levy waiver and Uisce Éireann connection charge rebate on housing commencements to date in 2024; and if he will make a statement on the matter. [24317/24]
View answerOn 25 April 2023, the Government approved additional measures under the Housing for All Action Plan to incentivise the activation of increased housing supply and help reduce housing construction costs, including the introduction of temporary time-limited arrangements for the waiving of local authority “section 48” development contributions and the refunding of Uisce Éireann water and waste water connection charges.
The schemes originally applied for 1 year to all permitted residential development that commenced on site between 25 April 2023 (the date of the Government Decision approving the measure) and 24 April 2024, and is completed not later than 31 December 2025. On 23 April 2024, the Government approved an extension for the waiving of local authority “section 48” development contributions in respect of residential development commenced not later than 31 December 2024 and the refunding of Uisce Éireann water and waste water connection charges in respect of residential development commenced not later than 30 September 2024.
The date for the completion of development works on qualifying houses under the schemes has been extended from 31 December 2025 to 31 December 2026.
Further to the comprehensive package of measures introduced under Housing for All, including the waiver and rebate schemes, the latest data on housing commencements indicates that the temporary time-limited nature of the waiver and refund schemes has achieved their primary objective of influencing the speedier activation of planning permissions by the development sector since they were introduced last year, including planning permissions that have been granted for a number of years and were not activated.
In this connection, Commencement Notice data in respect of residential construction starts in 2024 shows a significant spike in activity with 18,182 homes commenced in April alone, up 605% on the same period in 2023. This is by far the highest seen in any month since the the collection of Commencement Notice data began in 2014. The previous highest ever monthly figure was 4,969 In May 2021.
In the period from January to end April 2024, 30,138 new homes have begun construction – up 204% on the same four-month period in 2023.
This higher rate of housing commencements - influenced by the time-limited nature of the two schemes - should assist towards the achievement of the Government’s housing delivery targets in the coming years. The schemes have also assisted in enhancing the viability of schemes, particularly in relation to apartment schemes, and thereby influenced the bringing forward of development that might not otherwise have been as financially viable or possible to progress.
