Is setting aside 30% of new housing developments for First Time Buyers a good idea?

and it does not solve the real problem, which is that we are not building enough houses

The reason we do not build enough houses is that the Irish economy is not productive enough to enable workers to earn enough to afford the cost of building houses in Ireland. Paying workers more, or giving them subsidies which comes to the same thing, will not change this. We need to reduce the amount of profit going to those who own the land and other assets (finance, public sector service costs - roads, water, waste removal & treatment, etc) needed to build houses
 
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Mocame said:
Social housing is exempt from VAT in several EU countries
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Hi Mocame

Is it just social housing or is it all housing?

It makes no difference if there is VAT or not on social housing. As the government is the payer and the recipient.

There is no VAT on housing in the UK.

If there is a legal barrier to reducing VAT to 0%, the government could give buyers of homes for owner occupation a grant equivalent to the VAT.

Brendan
 
Second hand homes are the same price as new homes. I bought my house second hand it was only 4 years old but was lived in. Didnt get the help to buy scheme even doe I qualified, new homes in the same area going for same price as i paid so people getting the 10%help to buy but i get notting.
 
To my knowledge lower VAT rates in France apply just to social housing - details are here: https://www.avalara.com/vatlive/en/country-guides/europe/france/french-vat-rates.html

Historically we had lots of tax subsidies for home owners and first time buyers. For instance, stamp duty was lower for first time buyers in the 1990s and 2000s, mortgage interest relief was available and provided at higher rates for the first couple of years of the mortgage etc. I personally don't see why these types of measures could not be reintroduced - the issue is whether they would have any meaningful impact on affordability or whether they would just be captured in higher profits for developers.
 
Hi Mocame

The main issue is what can we do to build more houses?

If we give FTBs some advantage over STBs, that might help FTBs but at a cost to people who want to trade up. It probably won't result in more houses being built.

If we give social housing an advantage over FTBs , that helps social housing clients at the expense of people who pay their own way.

If we give investors an advantage over FTBs, we improve the supply of rental property. If we reverse this, it will be good for FTBs but will push rents up.

Imagine if funds flooded into this country and built thousands of new apartments and houses to rent that would not otherwise have been built. That would be a great thing overall.

Brendan
 
There are too few large-scale builders, this is the after effects of the hollowing out of the industry during 2008-2012.

How many firms can build 1,000+ houses per annum?

Two? Cairn and Glenveagh?

@Purple?

If we want to build 50,000 per annum, we need maybe ten firms of scale.

How do we encourage scale? Surely long-term contracts / stability is part of the solution?
 
@Mocame, I received a £3,000 first time buyers grant when I bought my first apartment. It probably added £8,000 to the price.
 
Protocol said:
@Purple?

If we want to build 50,000 per annum, we need maybe ten firms of scale.

How do we encourage scale? Surely long-term contracts / stability is part of the solution?
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I have no faith that any sector which is not open to real competition will ever be efficient. Innovation is uncomfortable and difficult. People and organisations which haven't done it from the beginning of their career or their business only start doing it when they are forced to by market forces. When you can go whinging to the government with your begging bowl looking for handouts or special treatment you'll always try that first.
 
If we give FTBs some advantage over STBs, that might help FTBs but at a cost to people who want to trade up.
We bought a secondhand home 4 years old in a new estate but got noting back from the government that's not fair
 
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