According to Savills, the initiatives introduced seem to fall short of directly enhancing the availability of new homes, thereby prolonging the existing housing challenges. For instance, maintaining the Help-to-Buy threshold without adjustment does not reflect the current economic and housing market conditions adequately.

John Ring, Director of Research at Savills Ireland, remarks: "Recognising the complexities inherent in financial policy decision-making, it is nonetheless noticeable that the budget did not introduce substantial measures to boost new home deliveries. The continuing housing issues would have benefited from more focussed, impactful initiatives, especially considering the ongoing hurdles potential homeowners are facing."

1. Unchanged Help-to-Buy Scheme Threshold: The extension of the Help-to-Buy scheme until the end of 2025 is a positive step. However, not increasing the scheme threshold overlooks the financial impact of inflation on prospective homeowners, potentially limiting access to the policy. Given that consumer inflation and construction cost inflation have been respectively at 20% and even higher since the scheme began, an adjustment to a minimum of €600,000 seemed not only justified but necessary to sustain its effectiveness.

2. Maintained Construction VAT Rate: The proposition to lower the construction VAT rate from 13.5% to 9% aimed to mitigate financial stress on new developments and encourage home building. Regrettably, this suggestion was not adopted, despite the urgent requirement and past government research endorsing such a reduction in a high inflation context.
3. Deferral of Residential Zoned Land Tax: Savills welcomes the 12-month deferral for the introduction of the Residential Zoned Land Tax, facilitating more time for land owners to engage in the planning process, especially considering the well-documented planning delays.