Tax breaks for developers would mean “going back to the worst of the bad old days”, a columnist has claimed. 

Following the revelation that fewer homes were built in 2024 than in 2024, there have been calls for the Government to reintroduce Section 23 tax breaks for builders. 

On The Hard Shoulder, Sunday Independent columnist Conor Skehan said the focus should be on the needs of buyers - not builders. 

“We have to start working on affordability instead of profit for the housebuilder,” he said. 

“Everything that we are doing is going back to the worst of the bad old days [by] talking about loosening banking rules, giving incentives to builders. 

“Nobody is looking at the house owner and making it affordable for them - and that’s what we’ve got to work on.” 

Builders at work on new homes in Newbridge County Kildare.Photo: Eamonn Farrell/RollingNews.ie

Mr Skehan said developers already make a significant profit on the houses they build and there is no need to further inflate their profit margins. 

“The Society of Chartered Surveyors did an exercise back in 1991 and they were showing that on your really cheap two bedroom apartment costing, say, €360,000 the construction costs were only €177,000 and the site was only €30,000,” he said. 

“All the rest of it went on soft stuff like contributions to the local authority, professional fees, selling costs, finance, contingency. 

“The biggest one of all is margin; the profit they’re making on everyone of these units is enormous.” 

He added that the Government continues to introduce an unhelpful level of uncertainty into the construction industry. 

“By continuously changing the rules, we hold out the hope for them that if they hang around a little longer, there’ll be another announcement about another new Government initiative that will increase their profitability,” he said. 

“They have no incentive to get going on it.” 

Homes under construction at Janeville, outside Carrigaline, Co. Cork, Ireland. Picture David Creedon / Anzenberger Credit: David Creedon/Alamy Live News

Instead, Mr Skehan argued that there should be more focus on developing an affordable housing supply within the planning system. 

“Imagine if we had land that zoned affordable housing,” he said. 

“You can’t have planning permission unless you can demonstrate that you’re going to sell or rent for about three times the cost of the annual income - that’s it.

“That’s a condition of being able to build on that piece of land.”

You can listen back to the full interview here:

Main image: Construction takes place in the Peyton estate in Rathcoole, Co Dublin. Photo: Laura Hutton/Photocall Ireland