Builders seek help-to-buy scheme for first-time homes

Builders are seeking a help-to-buy scheme for first-time house purchasers, as well as cuts in VAT and levies, in the industry’s pre-Budget submission to Government.

Construction Industry Federation (CIF) director general, Tom Parlon, and members of its board presented Minister for Finance, Michael Noonan, and his Public Expenditure and Reform colleague, Brendan Howlin, with a pre-Budget shopping list at a meeting on Thursday.

The CIF wants the State to put up 15 per cent of the cost of homes for first-time buyers to aid them in meeting requirements laid down by the Central Bank.

The buyers themselves would put up 5 per cent, allowing them to meet the standards set by the Central Bank in new rules governing mortgage lending set last year.

The organisation maintains that a similar scheme has worked well in the UK and says that it would help ease the current housing crisis by enabling builders to construct houses.

The federation is also seeking cuts in local authority development levies to cut building costs and the introduction of a 9 per cent VAT rate for residential construction for two years to incentivised construction.

Mr Parlon said that although the industry is beginning to see strong growth, it is still a long way off where it needs to be.

“The Government must ensure that they deliver a programme of growth for our industry, as set out in the Construction 2020 policy document,” he added.