Dáil Éireann Debate, Tuesday - 3 November 2015
306. Deputy Eoghan Murphy asked the Minister for Finance his plans to encourage homeowners to sell a part of their site for development, by, for example, exempting the sale from capital gains tax; and if he will make a statement on the matter. [37809/15]
View answerI have no plans to introduce a tax exemption as suggested by the Deputy. I am assuming that the suggestion is being made in the context of the housing supply issues which we face and while I appreciate the intention, I do not believe that the proposal offers any real solution to the problems involved.
It is Government policy to tackle the impediments and barriers to housing supply and the proper functioning of the property market. In this regard, Construction 2020 sets out the Government's strategy for tackling those critical blockages that appear to be inhibiting the sector's capacity including problems in the planning system, the weak balance sheet situation of developers, access to development finance, rigid construction costs and industry capacity constraints - including skilled labour shortages.
I would also like to draw the Deputy's attention to the announcement made in Budget 2016 in relation to NAMA's intention to target the delivery of 20,000 additional residential units before the end of 2020. 90% of the residential units will be provided in the greater Dublin Area, where the demand for housing is greatest. Approximately 75% of these units will be houses, primarily starter homes.
These actions along with other initiatives such as Social Housing Strategy are important in revitalising the sector and increasing the supply of housing however it will take time for the full effect of these measures to be realised.
I can assure the Deputy that the sector's recovery is being actively monitored and where appropriate this Government will adopt additional measures that support the long-term sustainable development of the sector.
