Major focus on housing
• €6 billion capital investment in housing for 2025 is the largest ever seen in Ireland. This includes:
– €3.1 billion from the exchequer
– €1.25 billion allocated to the Land Development Agency (LDA)
– €1.65 billion for the Housing Finance Agency (HFA)
• The focus remains on delivering on the government's national housing strategy, Housing for All.
• €2.3 billion in affordability investment will support initiatives like the First Home Scheme, Affordable Housing Fund, Secure Tenancy Affordable Rental (STAR) scheme, and Help-to-Buy initiative.
• The popular First Home Scheme receives an €80 million increase in funding, allowing an additional 2,000 homes to be purchased.
• The Help-to-Buy scheme is extended to the end of the decade, providing further support for first-time buyers.
Increased Investment in Construction
• To tackle vacancy and incentivise the use of existing properties, the Vacant Property Tax is increased from five to seven times the Local Property Tax (LPT).
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• Over €2 billion in capital investment is dedicated to new social housing builds by local authorities and Approved Housing Bodies (AHBs).
Planning and Infrastructure Support
• A total of €279 million is allocated for the Department's planning program, including funding for staff resources at An Bord Pleanála (planning board) and the Office of the Planning Regulator.
• The Urban Regeneration and Development Fund (URDF) receives €186 million, allowing further progress on existing projects and supporting local authorities in addressing long-term vacant and derelict properties.
Local Government
• €685 million is allocated for local government and electoral reform.
• This includes funding for increased pay and pensions for local authority employees and support for local government reform and digitisation projects.
• Funding is provided for building new fire stations, renovating existing facilities, and upgrading fire-fighting equipment.
Heritage
• €172 million is allocated for heritage, an increase of 11.5% on last year's budget.
• This includes a record €78 million for the National Parks and Wildlife Service to support conservation efforts in national parks and nature reserves.
Overall, the 2025 budget represents a significant commitment to the construction industry in Ireland. Increased investment in housing, infrastructure, and local government projects is expected to create new opportunities and support economic growth.
Following the budget announcement, Minister O'Brien said: "This budget, like the four which came before it, is unprecedented with €6bn in capital to help us to deliver social, affordable and cost rental homes for our people. It's the most any Government has ever invested in housing.
"A robust funding framework is the cornerstone of Housing for All and, by securing this increased level of capital investment, we are providing certainty and confidence to our people and the wider housing market.
"We're the top country in Europe for housing construction – with a sector which is growing – and expected to keep growing – while declining elsewhere in the continent. This budget will allow us to keep our foot on the pedal and sustain this strong delivery."
