Initiatives to improve supply of property also welcomed
The Society of Chartered Surveyors Ireland (SCSI) has welcomed a tax incentive for homeowners undertaking renovations introduced in the Budget which will enable homeowners to reclaim VAT on completed jobs worth more than €5,000 up to a maximum of €30,000.
The SCSI said that the measure would support legitimate businesses in the construction sector, improve standards and provide a boost to homeowners who may not be in a position to move.
Micheál O’Connor, President of the Society of Chartered Surveyors Ireland (SCSI) said “In the construction sector the effect of the shadow economy operators is detrimental and is having a negative impact on legitimate construction businesses by undermining their capacity to compete, risking their sustainability and potential to create jobs.
Today’s announcement is a welcome support measure both for homeowners seeking to renovate or extend their property and for legitimate contractors and will also improve standards and energy efficiency in the sector. Given recent issues such as Priory Hall, it is imperative that standards are upheld which may not be the case with operators in the shadow economy.” he said.
In relation to measures to improve the supply of property, the SCSI welcomed the extension to 4 cities of the City Living initiative and the proposed construction of 4,500 new homes by NAMA.
Mr O’Connor said “The extension of the immigrant investment programme to include REITs is also welcomed and will also further improve liquidity in the market. The extension of Capital Gains Tax Relief until the end of 2014 will also support further investment in the property sector”.
The SCSI also welcomed the Start your Own Business initiative and said that it would help boost legitimate employment in the construction sector.