Call on government to provide incentives
STEPS to free up unclaimed VAT in unsold housing were among a range of measures agreed on at a recent meeting of bankers, contractors, estate agents, developers, architects, surveyors and engineers throughout the Mid West region.
Those associated with the construction industry have voiced concern in recent months at the slowdown in new house sales,
which has resulted in heavy losses in employment, not only in building, but also in allied professions.
Referring specifically to the exceptional value currently available in the housing market, Conor O’Connell, on behalf of the Construction industry Federation, said they have been greatly encouraged by the number of people viewing showhouses and making enquiries.
Calling for a strong incentive from the government in order to restore activity in the housing market, Mr O’Connell said that while this would alleviate much of the current pressure on exchequer revenues and economic activity in general., that to be effective the initiatives taken should be easily understood and attractive to purchasers.
“Any such scheme must have a limited life in order to make participation in it attractive to the purchaser immediately,” he stressed.
The Mid West branch of the CIF insists that the introduction of such a scheme would not drive up house prices.
“It presents a situation whereby the existing stock of unsold new homes would start to move again, which would generate transactions for the wider economy,” they state.
Schemes recommended include a tax credit scheme which would give first time buyers a tax credit of 5,000 euro per annum for a four year period if the transaction is undertaken prior to December 31, 2009. For those purchasing between January 1, 2010 and the end of December 2010, the tax credit could amount to 5,000 euro annually for a two year period.
Under a First Time Buyer’s incentive it is recommended that the level of incentive should be set at 20,000 euro for the period up to December 31, and 10,000 euro for the period, January 1, 2010 to end of that year.
The CIF say the schemes have the potential to generate additional revenue for the exchequer and that this would exceed the cost of funding the schemes.
“It’s also been suggested that stamp duty for all residential transactions be abolished for the remainder of the year and if and when the imposition of stamp duty is restored, the level set should relate to the Building Energy Rating attached to the property concerned,” concluded Mr O’Connell.
