Property advisor Savills Ireland has called for an extension of the Help to Buy scheme, the easing of rental caps and a cut in the rate of commercial stamp duty in its Budget 2025 submission.
In its submission today, the property advisors said the Help to Buy should be extended until December 2028.
It also said the property value threshold should be raised to €614,000 in Dublin to account for rising construction costs and consumer inflation, which has increased by 22.8% since 2017.
Savills said these adjustments will ensure continued support for new homeowners and stimulate the housing market.
Today's Budget submission from Savills also calls for a reassessment and easing of rental caps to create a more favourable investment environment, which will lead to an increase in the development of new rental units.
It noted that 5,000 private rented sector (PRS) units were delivered in Dublin in both 2022 and 2023, but in more recent years, the market has witnessed a dramatic downturn, mainly due to government interventions such as rental caps, combined with rising interest rates and construction costs.
Savills said that these measures, although aimed at protecting tenants, have inadvertently discouraged international investors, leading to a decline in the development of new rental units.
It has predicted that Dublin PRS completions are set to decline by 68% to 1,600 units in 2025.
It has also proposed reducing the commercial stamp duty rate from 7.5% back to 2%, which it said will restore investor confidence and boost market activity.
"This measure is critical for maintaining Ireland's competitiveness as a prime investment destination," Savills said.
Other measures suggested in today's submission include financial incentives and tax breaks for developers, integration of developments into local plans and fostering public-private partnerships to address the shortfall in student housing.
Savills also said the Temporary Development Contribution Waiver Scheme should be extended to counter high construction costs and support housing commencements, while it recommends increased funding for construction trade training and enhancing the visibility of apprenticeships to attract and train a skilled workforce.
"The housing market in Ireland stands at a crucial juncture and its recommendations are designed to promote stability, encourage investment and ensure a steady supply of housing across all sectors," Mark Reynolds, Managing Director of Savills Ireland, said in today's submission.
