Summary
The government is considering new measures to facilitate access to finance for smaller builders, potentially easing the housing crisis. The proposals would allow Home Building Finance Ireland to provide loans for purchasing residentially zoned land before securing planning permission. This change aims to eliminate a significant financial barrier that smaller developers face, as traditional banks often refuse to lend for such ventures due to perceived risks.
Ciarán Breen, a developer from Ciarán Breen Construction, emphasizes the importance of these proposals, noting that current financing options are prohibitively expensive, often requiring substantial upfront costs and high-interest rates. He argues that easier access to finance could encourage more builders to take on projects, particularly in areas where housing demand is high. However, he cautions that while this measure could be beneficial, it is not a comprehensive solution to the multifaceted housing crisis, which also involves issues like planning delays and rising construction costs.
Breen suggests that additional measures, such as suspending VAT for a few years, could further stimulate the housing market. He believes that treating the housing situation as a crisis, similar to the response to the COVID-19 pandemic, could lead to faster and more effective solutions. Ultimately, he expresses hope that the government’s focus on supporting smaller, locally-based builders will help address the ongoing housing shortage in towns and rural communities.
Show Notes
The Government is considering new measures to make it easier for smaller builders to access finance and develop new homes.
The proposals would allow Home Building Finance Ireland to provide loans to purchase residentially zoned land before planning permission has been secured, potentially removing a significant financial barrier for smaller developers.
But will this lead to more homes being built and help address the housing shortage?
To discuss the proposals, Alan Morrissey was joined by Ennis developer Ciarán Breen of Ciarán Breen Construction.
Photo (c) panida wijitpanya from Getty Images via Canva
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