James Reynolds of the National Party has urged the government to “relax” rural planning restrictions to make homeownership more “attainable” and “affordable”.
Reynolds, who is running for the European elections said that “urgent action” is needed to reduce the cost of building a home.
He added that wages in rural Ireland are often “too low” to qualify for a mortgage at current house prices, and people starting out, face an “impossible situation”.
The European election candidate said that rural living is “demonised” due to government policies and that obtaining planning permission in the country is impossible.
“As a result, schools are closing, and sports organisations are struggling to field teams. Government policies are forcing people into towns and cities. The countryside is dying.
“Current and proposed government initiatives and tax incentives do not solve the core housing issue. I am calling on the government to reduce the financial contributions levied by the state from new house construction,” he said.
The Irish House Builders Association reported that around 40% of the cost of building a new home goes to the government through value added tax (VAT), levies, and PAYE/RPSI charges.
“It is more expensive to build a house in Ireland than anywhere else in the world when all factors are considered. The government’s take of 40% of the finished house cost, is a major factor in this,” Reynolds added.
He said that that equates to €100,000 for a €250,000 house, and that it is an “exorbitant” amount for people to pay who are trying to purchase a home.
People who are aiming to build new homes face “numerous costs” that make the process for them, however, there has never been a “better opportunity” to implement these changes, Reynolds said.
Rural housing
Meanwhile, the government has been called on to oblige local authorities to plan, deliver and support housing in rural areas.
Victor Boyhan, a member of the Seanad, said that county councils should be required to support rural housing irrespective of whether housing is one-off or in clusters.
Boyhan said that such support would “reflect the nature of the market in rural parts of the country and provide practical support for those wanting to pursue the self-build option”.
Boyhan told the Seanad that people should be allowed to remain and return to rural communities, and called for the issue around rural homelessness to be properly recognised.