Finance Bill 2025 [Certified Money Bill]: Committee Stage
Seanad Éireann — 2025-12-09
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Frankie Feighan (FG), Sligo-Leitrim

This section provides for a temporary 9% VAT rate on the supply and construction of apartments and apartment blocks as part of our social policy. The temporary 9% rate of VAT on the supply of apartments came into effect on budget night. The extension to the construction of apartments and the supply and construction of apartment blocks, including student accommodation, came into effect on 26 November 2025, which was the date of Report Stage in the Dáil. The 9% rate will apply until 31 December 2030.
The Government's view is that everything that can be done to increase the supply of housing should be done. The reality is that Government funded or subsidised housing will not be enough to meet the housing requirements of our growing population. Measures are required to incentivise the private market to meet housing demand. This VAT measure is targeted specifically at apartment construction, one of the areas that we know has viability challenges when considerations are made by private operators as to whether they should begin construction.
This is a measure that will take place over five years and will, among many other measures, help to meet our housing needs. It is in line with the social policy to support higher density housing by reducing the viability gap for apartment construction. This measure will support the development of all qualifying apartments, including those sold as affordable housing.
As such, I cannot accept this recommendation.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2025-12-09/debate/main
Retrieved: 2026-08-14T04:54:26+00:00
Sitting date: 2025-12-09