Tuesday 23 January 2018

Sweeteners for builders who sell new homes at less than market value

The cash incentives are part of the Government's plan to solve the housing supply problem
The cash incentives are part of the Government's plan to solve the housing supply problem

Niall O'Connor and Daniel McConnell

Developers who sell homes at below market value will be given cash incentives as part of the Government's desperate bid to tackle the housing supply crisis.

Strict new rules aimed at protecting tenants are set to be introduced by Environment Minister Alan Kelly, along with a string of sweeteners for builders and landlords.

Up to 8,650 affordable homes in Dublin and Cork will be unlocked by the end of 2017 at a cost of €180m to the taxpayer.

For the first time, landlords will have to give three months' notice prior to eviction and will be offered concessions for long-term leases.

The ambitious plan will target developers with large land banks, such as those with at least 50 new homes, which have planning permission.

Mr Kelly is concerned many apartments being built are coming to market at over €300,000 - out of the reach of many first-time buyers.

The Government is willing to refund developers "in return for accelerating the delivery of new homes at increased volumes and at prices that are more affordable", according to sources.

It is understood the principle of the radical plan has been agreed within Government, however, the funding of the scheme will be discussed by Mr Kelly and Finance Minister Michael Noonan at a special pre-Budget meeting today.

Irish Independent

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