ARTICLE
25 August 2023

Latest Government Measures To Reduce Cost Of Developing Housing

M
Matheson

Contributor

Established in 1825 in Dublin, Ireland and with offices in Cork, London, New York, Palo Alto and San Francisco, more than 700 people work across Matheson’s six offices, including 96 partners and tax principals and over 470 legal and tax professionals. Matheson services the legal needs of internationally focused companies and financial institutions doing business in and from Ireland. Our clients include over half of the world’s 50 largest banks, 6 of the world’s 10 largest asset managers, 7 of the top 10 global technology brands and we have advised the majority of the Fortune 100.
In response to increased demand for housing in Ireland, the Irish Government have approved a number of measures as part of its 'Housing for All Action Plan' which aim to help reduce the cost of developing housing.
Ireland Real Estate and Construction
To print this article, all you need is to be registered or login on Mondaq.com.

In response to increased demand for housing in Ireland, the Irish Government have approved a number of measures as part of its 'Housing for All Action Plan' which aim to help reduce the cost of developing housing. One such measure is a temporary, one year waiver of development contributions due to local authorities for permitted residential developments (the "Temporary Waiver Scheme") and a refund scheme in respect of Uisce Éireann standard connection charges for those developments (the "Uisce Éireann Refund").

Temporary Waiver Scheme

The Temporary Waiver Scheme applies to all permitted residential developments which commence on site between 25 April 2023 and 24 April 2024. A hard deadline for the completion of the residential development has been set at 31 December 2025. Failure to complete development by this date will lead to the developer being required to make a full repayment of the development contribution that has been waived.

The development contribution which would otherwise be paid by the developer is instead paid by the Department of Housing, Local Government and Heritage (the "Department") to the relevant local authority.

Types of residential development that qualify

Residential developments which qualify for the Temporary Waiver Scheme include multi-unit developments; self-build houses; one off rural houses; student accommodation and sheltered housing. However, it does not apply to domestic extensions; renovations or refurbishments of existing dwellings; changes of use; granny flats; nursing homes; hotels; or aparthotels. In the context of mixed use development, the waiver applies only to the residential element of the development. Extensions and refurbishments of vacant or derelict properties are also excluded.

How to apply

Applicants for the Temporary Waiver Scheme must submit an application form along with the commencement notice for the development to the relevant local authority. The local authority assesses the development and if it qualifies for the Temporary Waiver Scheme, they will issue a waiver approval letter and an undertaking form to be signed by the developer. The undertaking states that the developer will repay the Department in full if the terms of the Temporary Waiver Scheme are not complied with. The undertaking needs to be signed by the developer and submitted to the relevant local authority and, if successful, the local authority will issue a letter of approval confirming the amount of waiver that has been applied.

Uisce Éireann Refund

An additional support that developers may be entitled to is a refund from Uisce Éireann in respect of water and wastewater connection charges for permitted residential development. The process will involve the developer applying to Uisce Éireann for a refund by submitting a copy of the waiver approval letter obtained under the Temporary Waiver Scheme along with a completed Uisce Éireann refund application form. The application form is not available on the Uisce Éireann website yet but there is a note to say that this is being finalised and further details will be available on their website in due course.

Conclusion

The hope is that the Temporary Waiver Scheme and Uisce Éireann Refund will go some way in making residential developments more financially viable and will in turn help boost the delivery of new housing supply, however, how effective this will be remains to be seen.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More