Developer Windfall in Budget 2026 pushing up price of apartments
Developer Windfall in Budget 2026 pushing up price of apartments - The Labour Party
Responding to a study by the Society of Chartered Engineers and Surveyors, Labour Housing Spokesperson Conor Sheehan TD has said that the measures introduced in the Budget which they claim has closed the viability gap in the construction of apartments will continue to push the price of apartments up.
Deputy Sheehan said:
“What we saw in the Budget was a massive transfer of wealth to big property developers and institutional investors to bridge a viability gap and start the 41000 plus apartments lying idle in the planning system. This comes after the botched attempt to reduce apartment standards which now lies in tatters in the courts.
“However, the core issue remains that Government continue to push up the prices and push ordinary home buyers out of the market by using these and developer subsidy schemes like Croí Cónaithe.
“These measures give large subsidies to developers, inflating the market and do not guarantee any affordability for first time buyers. The result being that it now costs over €600,000 for a two bed apartment. Developers are getting huge cash subsidies from the tax payer which they are not passing onto buyers
“We saw nothing in the housing plan to guarantee affordability for first time buyers, in fact Government went into reverse with the removal of the private housing targets. This is a Government that has prioritised developer profit over first time buyers and renters.
“What we need to see is a massive ramping up of affordable purchase and cost rental apartment delivery. We need to see the state directly deliver these through the LDA and we need to see cost rental apartments delivered at scale. The targets in the new housing plan are far too unambitious as they do not consider the deficit that exists.
“The state must also take a much stronger role in land management, we need to see local authorities, the LDA and approved housing bodies resourced to acquire land and they must be mandated to dedicate a significant proportion of that land to affordable housing and affordable apartment delivery.”