Business Property & Mortgages

Wednesday 17 September 2014

What's in the construction industry plan?

Published 13/05/2014 | 02:30

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Mortgage insurance: Targeted at first-time buyers of new houses, the State will guarantee part of the mortgage to allow banks to provide more mortgages to increase the supply of new-build homes.

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Financing: NAMA will provide a further €2bn in finance for developers to build 4,500 new houses and apartments in Dublin alone.

Investment fund: The new Irish Strategic Investment Fund will provide equity and loans on commercial terms to developers who cannot access finance.

Social housing: Developers will build and manage additional social housing and be guaranteed an income through rents under the Housing Assistance Payment.

Part 5: The requirement on developers to set aside up to 20pc of new developments of five or more houses for social or affordable housing, known as Part 5, will be halved.

Development levies: The charges imposed on property development will be substantially reduced as councils have additional income from the property tax.

Vacant site tax: Sites and land zoned for development but not built upon will be taxed to stop developers sitting on land because they are waiting for the market to improve.

Water: To speed up the development of water and sewage projects, the amount of funding will be increased through borrowing by Irish Water.

Infrastructure projects: A review of all major infrastructure projects is being undertaken to any blockages in funding or delays in advancing the project, such as PPP projects.

Planning: Along with building regulations to improve housing quality, there will be more centralised monitoring of zoned land, housing, offices and infrastructure.

Capital: A review of all the greenfield sites in Dublin is being undertaken to identify why particular developments are not under way.

Irish Independent

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