The Government is looking into new cash-back and tax-back schemes designed to accelerate the construction of homes.
The proposed incentives would focus on large-scale apartment developments and housing estates, offering tax refunds or direct cash grants to developers upon project completion, according to a report in the Irish Independent.
Unlike traditional funding models, these financial supports would not be provided upfront or in staged payments. Instead, developers would only receive financial benefits once the homes are fully built and occupied. The plan aims to help bridge financing gaps that often delay or hinder large housing projects.
In 2021 the UK Government introduced similar measures, which successfully encouraged developers to invest in apartment construction, particularly on brownfield sites. Irish officials believe those schemes were effective in stimulating development, with some major Irish firms even expanding their operations in the UK as a result.
However, the proposal has sparked debate within the Coalition. Some members are cautious about using tax incentives for developers, fearing a repeat of past mistakes made during the Celtic Tiger era, when excessive incentives contributed to the financial crash. Despite these concerns, the Government is under significant pressure to demonstrate progress in addressing the housing crisis.
