Budget gets bronze medal
What a frustrating week. In an effort to remedy the shortage in supply of housing, three announcements were made last Tuesday in Budget 2017 aimed at assisting the property market. There was a tax rebate for the FTB up to €20,000; increased interest relief for the investor over the next five years; and increased allowances for those renting out a room.
How effective will these measures be and will they work? Ultimately, they will. However, here is the problem - it will take at least 18 months before the benefits take effect. Historically, the average life cycle of a new housing development from concept to completion is a minimum of two years.
According to Housing Minister Simon Coveney last week, he and his department carried out a survey on the 15 biggest residential planning applications to hand. The average time for a large residential development to proceed through the planning process was 78 weeks. This led to the inclusion in the 'Rebuilding Ireland' document of a new planning mechanism that allowed applications for large developments to be made directly to An Bord Pleanála. In theory, this will cut the planning decisions to 25 weeks.