Dáil Éireann Debate, Thursday - 18 December 2025
254. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the total estimated amount of public money that will be handed over to property developers for apartments that would have been built anyway from Budget Day to 2030 accounting for measures related to VAT, restricting additionality to only apartment above the number of apartments projected to be built without these measures; and if he will make a statement on the matter. [73163/25]
Amharc ar fhreagraThe VAT reduction, in concert with the suite of complementary broader policy measures, will materially change the viability prospects of many developments. The estimated cost of the VAT measure is approximately €250 million in 2026, rising to an estimated €390 million in 2030.
The Government anticipates that in the short-term, projects which were deemed non-viable or marginally viable will now proceed. Over the medium to longer term it is expected the industry will grow, in terms of its productive capacity and annual output, such that it is better positioned to meet society’s needs for new housing in a more cost-efficient way.
It is not possible to provide an estimated figure for the cost of the deadweight within the VAT measure as it is not possible to determine a counterfactual against which the estimated cost of the measure could be set against. However, there is clear evidence that viability gaps are resulting in an under-supply of much needed new homes, and I believe these measures are appropriately designed to deliver additional supply into the market.
