New legislation aims to assist smaller homebuilders

Updated / Tuesday, 27 Oct 2026 06:00

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The Government is planning new legislation aimed at making it easier for smaller homebuilders to access finance to develop new homes.

Tánaiste and Minister for Finance Simon Harris is bringing proposals to Cabinet on Wednesday that would allow Home Building Finance Ireland to provide loans to builders to purchase land before planning permission has been granted.

Currently, around 900 smaller developers can only access this funding once they have secured a site and received planning permission.

Under the proposed changes, builders would be able to borrow money to purchase land already zoned for residential development, even if planning permission has not yet been secured.

The move is aimed at removing financial barriers facing smaller builders and speeding up the delivery of new homes.

Research by Home Building Finance Ireland found that more than 90% of homebuilders deliver fewer than 50 homes a year.

The Tánaiste is expected to tell Cabinet that the changes would reduce the amount of money builders need to put up themselves in the early stages of a development.

The proposals follow discussions with the construction industry about the challenges facing smaller developers.

If approved by Cabinet, the legislation will be published and sent for pre-legislative scrutiny.