Property Industry Ireland responds to Budget 2023

Commenting on the Budget announcement on Tuesday, Ivan Gaine, Chairperson of Property Industry Ireland (PII), said: “PII broadly welcomes the wide-ranging cost of living measures outlined this week by the Government in Budget 2023.

“The extension of the Help to Buy measure to the end of 2024, and the extension of the Residential Development Stamp Duty to the end of 2025, are measures that are commended by the sector. PII believes that legitimate homebuilders should not be charged the residential zoned land tax while land is progressing through the planning process and look forward to the proposed amendments in the Finance Bill referred to by Minister Donohoe.

“However, the Budget fails to address the systemic problems in housing, particularly relating to the viability of delivery of rental homes and general viability within the construction sector. Capital investment in housing needs to be stimulated in light of the changing interest rates cycles. Budget 2023 was a missed opportunity to address the treatment of all investors in the rental market.

“There are very significant challenges in delivery of all types and tenures of housing units, which is exacerbated by the rising interest rate and inflation cycle we’re currently experiencing”, he concluded.