Minister rules out extension to developer levy waiver

Updated / Friday, 30 Oct 2026 06:17

Minister for Housing James Browne has put pressure on developers to finish new homes by the end of this year by insisting an existing waiver on water connections and developer levies will not be extended past December.

Speaking to RTÉ News, the Fianna Fáil TD said while the existing waiver, which was introduced two years ago, has helped to speed up developments, there is no possibility it will be extended into 2027.

It is a reiteration of previous Department of Housing statements, but is believed to be an attempt to force developers to speed up construction in the final two months of this year - a move that will in turn increase the official and highly politicised annual housing and apartment construction rate.

The waiver was first introduced in 2024 and means developers do not have to pay for water connections or a levy on newly constructed developments if they are finished by the end of 2026 with the State instead paying these costs.

It was intended to encourage developers to speed up the construction of new houses and apartments in order to avail of the financial support.

After the Central Statistics Office reported the construction of new homes has increased this year - with 26,833 homes built between January and September compared with 24,256 homes in the same period last year - Mr Browne said the increase is the highest since the CSO began to count these figures and is a sign that policies like the levy waiver are working.

While the Government no longer publishes year-on-year new housing construction targets after a series of failures to reach the targets, it has suggested Ireland is on course to deliver 40,000 new homes this year.

However, opposition parties including Labour, Sinn Féin and the Social Democrats have pointed out this figure still falls far short of the estimated 50,000 new homes needed each year between now and 2030 to meet medium-term Government targets.

The independent Housing Commission recently backed the target of 50,000 new homes a year, saying between 250,000 and 300,000 houses and apartments will be needed by the end of the decade to meet demand.