Less than half of the costs involved in building a three bed, semi-detached house in the greater Dublin area go towards construction, according to a survey by the Society of Chartered Surveyors.

The report, based on a study of eight house building projects in or around Dublin, found that the ‘hard cost’ of construction was around €150,000.

However land and acquisition costs added €57,500 (17%) to that, while a €39,000 (12%) VAT bill also applied.

Other ‘soft costs’ also added to the final bill; including levies, professional fees and sales and marketing costs.

And when a €38,000 (11%) margin was added, the SCSI said the total cost of building came to €330,000.

The society said that the report highlighted the need for cost reduction as part of any attempt to increase the supply of housing in the country.

It called on the Government to look at the options available to it as part of this, though it said the focus should always be improving supply rather than adding to house price inflation.