Construction costs and VAT driving Mayo builders out of sector - TD

Housing commencements in Mayo for the first six months of this year are among the lowest in a decade, according to Deputy Paul Lawless.

The Aontú representative said he knows small and medium-sized builders in the county who would be willing to build but who simply cannot afford to do so because of construction costs.

He stated: "I know families who have jobs, mortgages and planning permission that simply cannot afford to build at the moment.

"That is the viability gap that exists right across the construction sector.

"Meanwhile, the government took in over €3 billion from VAT on construction materials and services last year.

"Development contribution levies, connections to services and other expenses are driving the cost of construction and choking housing delivery.

"The affordable housing scheme delivered just five units to Mayo and there were no cost-rental units in over the past number of years.

"Why has the government ignored middle Ireland and ordinary families across Mayo?

"Why is it ignoring couples who choose to self-build as well? These people are totally locked out of housing schemes and so on.

In reply, Tanáiste Simon Harris said he will see if the government can engage with the chief executive of Mayo County Council on the matter.

"Even in a country as geographically small as Ireland, there can be certain ways that local authorities and national government can work together to try to advance a response to the housing challenges.

"I would point out, though, that we are seeing in Mayo one of the largest drawdowns in the country of the vacant property refurbishment grant. The latter is a practical measure that is helping.

"On the viability issue, we have to try to get the balance right," he outlined.