Dillon confirms extension to development fee waiver

Minister of State at the Department of Housing, Local Government and Heritage and Mayo TD, Alan Dillon, has confirmed an extension of the waiver for local authority development contributions until the end of this year.

Additionally, the refunding of Uisce Éireann water and waste water connection charges, a scheme which has reduced house building costs by an average of €12,500 per home, has been extended until the beginning of October.

Minister for Housing, Darragh O'Brien TD, brought forward a memo to Cabinet yesterday seeking this extension that was formally agreed. This measure has been instrumental in reducing housing construction costs and ensuring more houses are built since its introduction back in April 2023.

Minister Dillon said: “We have seen significant success with the introduction of the development charges waiver and the water connection charges refund scheme, which has reduced house building costs by an average of €12,500 per home. 

“This substantial saving has boosted the delivery of new housing supply and addressed cost and viability issues faced by the construction sector.”

He added that the 21 percent surge in commencements in 2023, leading to over 32,600 housing units, proves the waiver and refund scheme has been ‘effective’.

Minister Dillon emphasised the financial benefits these measures provide for developers and residents starting out to build their own home.

He added: “By absorbing the costs of local authority section 48 development contributions and refunding of Uisce Éireann water and waste water connection charges, the scheme significantly alleviates the financial burden on developers. This incentive is vital for sustaining the momentum of development, especially in months ahead.”

Minister Dillon explained that during the first quarter of this year, Mayo saw a ‘record number’ of residential construction starts with 161 homes, marking a 71 percent increase compared to the same period in 2023, which had 94 units. 

“This is the highest number of commencement notices for the first quarter since the data series began in 2015,” he said.

Minister Dillon believes that the government action to activate the delivery of more homes is working, however, they need to guard the progress that is being made and ensure the upward trajectory continues.

“Without question, the development contribution waiver and Uisce Éireann connection rebate scheme has led to a surge in new home starts and provided a much-needed jolt to our supply pipeline,” said the Minister. “Building started on 12,000 new homes in the first three months of the year alone - a 63% increase compared to the same period in 2023 and a record first quarter,” he said.

Just recently, following Minister Dillon’s appointment as Minister of State with responsibility for Local Government and Planning, Independent county councillor Richard Finn called on him to relax planning regulations and reduce the tax burden for building new houses.

Minister Dillon emphasised the Government’s commitment to growing the current positive momentum in the delivery of new homes. 

He concluded: “Supply is key to making progress in housing, and there is real momentum under Housing for All, with record levels of new homes being built, a strong pipeline, and more first-time buyers getting the keys to their own home.”