The government’s budget has used sticky plasters on the housing crisis where major surgery is needed the Jesuit Centre for Faith and Justice has warned adding that the greed of developers has been rewarded while the young consider emigration.
“Once again, the government have prioritised the wants—not the needs—of developers. The real boon came to the developers who are set to increase their profit margins substantially with a VAT decrease of 13.5% to 9% on the sale of apartments. As housing expert Orla Hegarty pointed out, the current profit margin for developers selling apartments is €48,605, and the decrease in VAT is set to increase that profit to nearly €70,000. A nearly €50k profit is more than a lot of people earn in a year. How is it in the best interest of the country to help those whose business model is greed?” asks Dr Alexia O’Brien, Housing Policy Advocate for the JCFJ.
She added: “The government did extend the Renters’ Tax Credit, the Help-to-Buy Scheme, and the Mortgage Relief Scheme. But these are plasters, where surgery is needed. Even the commitment to build more social housing falls short of what is needed. The budget anticipates around 10,000 new social housing homes, but there are over 55,000 people on the list, with numbers continuously increasing.”
Dr O’Brien warned that “This budget will do nothing to dissuade young people who are planning on emigrating to Australia, Canada, or Dubai because they are priced out of the housing market…Catholic teaching is clear: we cannot preserve dignity and the common good when the interests of the few outweigh the interests of the many (Gaudium et Spes §69). Housing is a basic need of life. This budget makes it seem like a luxury” she said.
