Dáil Éireann Debate, Tuesday - 14 July 2026
207. Deputy Emer Currie asked the Tánaiste and Minister for Finance the measures in place to ensure that consumers will feel the benefit of a measure (details supplied); and if he will make a statement on the matter. [53408/26]
View answerAs the Deputy will be aware, under the Government's housing strategy, Delivering Homes, Building Communities, the Government aims to complete a minimum of 300,000 new homes by the end of 2030. It is acknowledged in the plan that increasing the availability of apartments will be a key part of this strategy.
Prior to the announcement of this measure, analysis from both the Department of Finance and the Department of Housing had found that a viability gap had emerged in the delivery of apartments, with the number of completions seeing a decrease in 2024. To help address this, Budget 2026 applied a reduction in the VAT rate from 13.5% to 9% on the construction and sale of newly completed apartments. The aim of this measure is to further incentivise the construction of compact developments and achieve the policy goals outlined in the revised National Planning Framework.
It should be noted that while the correct VAT rate must always be charged, the VAT exclusive price of a good or service is a commercial decision made by the vendor. A reduction in VAT may be reflected in the final price and result in the final consumer paying less for a good or service. However in other cases the price paid by a consumer will not be reduced.
