Currently, the application deadline is set for 24 April 2024, with the requirement that developments must be completed by 31 December 2025. However, Savills is calling for the application and completion deadlines to be extended for at least another year. Given prevailing high construction costs, high interest rates, and systemic planning challenges and delays, this extension will support the delivery of more homes by allowing for the realistic timelines required for large-scale developments.

An analysis of housing commencement notices shows that an additional 8,878 residential units were commenced between March 2023 and February 2024 compared to the preceding 12-month period. According to Savills, these commencements are in part are as a result of the Development Contribution Waiver Scheme, and therefore it should be extended.

By covering the full cost of development contribution levies due to local authorities, the scheme has facilitated the commencement and progression of numerous housing projects across the country. However, with the scheme's looming expiration, commencements are likely to fall at a time when there is a pressing need for continued support to maintain momentum in addressing the housing supply shortfall.

Andrew Sherry, Director of Development Consultancy at Savills Ireland commented:

"While we recognise and appreciate the measures taken by the Government to support housing development, the reality is that the crisis persists, with demand far outstripping supply. The extension of the Temporary Development Contribution Waiver Scheme is not just beneficial, but necessary, to keep projects viable and to encourage the delivery of more homes. It's a matter of building on what works and ensuring we don't lose ground in our efforts to mitigate this crisis."

Mark Reynolds, Managing Director, Savills Ireland commented:

“Extending the waiver scheme represents a practical step towards achieving a more balanced housing market, ensuring that developments can continue to contribute effectively to the national housing supply. By advocating for this extension, Savills Ireland underscores the importance of continuous, targeted support for the housing sector. It is a call to action for the Government to reaffirm its commitment to addressing the housing shortage, a critical issue that impacts thousands of Irish families and individuals.”