Sign the petition: Extend the development contribution waiver

Self-builders in ROI could be tens of thousands out of pocket if the government doesn’t extend the Development Contribution waiver which is due to expire on April 24, 2024.

In this article we cover:

• Government’s refusal to extend the waiver
• Why the waiver should be extended
• Why self-builders aren’t getting to avail of the scheme
• Map of how much development contributions will cost after April 24
• SIGN THE PETITION HERE

Selfbuild started a petition to call on the ROI government to extend the Development Contribution waiver.

The petition was initiated because Selfbuild has learned there are no plans to extend the government’s development contribution waiver beyond April 24th 2024.

“It is not proposed to extend the terms or timeline of the scheme beyond those as approved by the Government in its Decision of 25^th April 2023,” wrote Minister of State Kieran O’Donnell in response to correspondence from TD Richard O’Donoghue.

This, despite some indications the government might extend it.

The decision will cost self-builders thousands of euros, as the waiver applies to both development contributions which can cost between €1k to €30k+ depending on where you’re building, and Irish Water connection fees.

For both Irish Water mains water and wastewater connections, self-builders are saving around €6k thanks to the waiver, or roughly €2k and €4k respectively. Self-builders availing of the Irish Water fee waiver must first pay the connection charges then apply for a refund.

Development contributions pay for infrastructure; local authorities charge developers and self-builders development contributions when planning permission is approved.

Local authorities haven’t been charging developers and self-builders development contributions since the waiver was put in place in April 2023.

TD Richard O’Donoghue says self-builders are rushing to file their planning applications and commencement notices in a bid to qualify for the waiver before it expires at the end of next month.

In order to qualify self-builders need to file their commencement notice, which means planning permission needs to be in place, before April 24th 2024. The build must be completed by December 31st 2025.

O’Donoghue, who is a builder himself, argues that self-builders didn’t get a chance to avail of scheme because small builders are tied up working on other jobs.

He says builders are especially busy working on retrofitting jobs, which are grant aided, and working as subcontractors on larger housing projects.

“A lot of small builders won’t commit to projects for six months,” O’Donoghue told Selfbuild. He added that cash flow is an issue for small builders as tradesmen are looking to get paid on a weekly basis, as opposed to monthly as used to be the norm. Skilled labour costs are increasing on a regular basis too, he added.

“At the most builders make a 10 per cent profit margin, and that’s the max, six per cent is more usual. Out of that comes inflation costs, from labour to materials, breakages, everything. It’s a thin margin to work on.” This makes other jobs more attractive.

O’Donoghue isn’t the only TD lobbying to extend the waiver; other Independent TDs include Michael Fitzmaurice, Michael Collins, and Mattie McGrath.

In November of last year Fine Gael senator Regina Doherty also called on government to extend the waiver for a year and a half, to the end of 2025.

“In the face of rising construction costs, it is essential that we continue to boost the construction of new homes, to increase supply across the board,” she said in her statement.

SIGN THE PETITION HERE

Letter from Minister of State Kieran O’Donnell to Richard O’Donoghue dated March 2024:

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