Fianna Fáil is proposing to reduce development levies to stimulate construction activity and to raise rent supplement by 10 per cent as part of efforts to tackle housing shortages.
In discussions with Independent TDs, Fianna Fáil has said it would invest an additional €334 million per annum to fund 45,000 social houses.
Housing is one of the biggest issues in talks on the formation of the next government.
A paper tabled by Fianna Fáil proposed a range of measures, such as a review of density guidelines to allow for increased home-building, the urgent delivery of modular housing and the introduction of a first-time buyer’s savings scheme at a cost of €87 million over three years.
The proposal to raise rent supplement by 10 per cent at a cost of €32 million would be concentrated in Dublin and subjected to a rolling monthly review to test its impact on the market.
Social housing
Fianna Fáil would seek to renegotiate the National Asset Management Agency (Nama) housing plan to increase the number of social and affordable houses to 20 per cent of new Nama-led housing developments.
Meanwhile, Fine Gael has proposed to temporarily cut the amount of VAT payable on new homes and apartments from 13.5 per cent to 9 per cent, a move advocated by the Construction Industry Federation.
Fine Gael said it would work with the Central Bank, as part of its review of mortgage lending limits, to develop a “Help to Buy” scheme to help first-time buyers get mortgages.
Minister for Finance Michael Noonan is to brief Independents on the costings of Fine Gael proposals on housing and other matters today.
The Independent Alliance – comprising Shane Ross, Finian McGrath, John Halligan, Michael Fitzmaurice, Kevin “Boxer” Moran and Seán Canney – has said a way must be devised to fast-track the planing process for housing in the short term.
The group has said a plan to build 25,000 houses per annum should be put in place. It has also called for a “proper funding mechanism” to be provided to local authorities to ensure housing stock is maintained, along with the completion of unfinished housing estates.
