Councillors worry Tipperary is not an attractive location to build homes

Councillors at a special meeting of Tipperary County Council have raised concerns that the county may not be attractive to builders. 

The special meeting was held to identify ways to tackle the housing crisis in Tipperary and included a presentation from the Construction Industry Federation (CIF). 

During the presentation, CIF Director for the Southern Region Joanne Treacy highlighted the gap between the cost of building houses and the Help to Buy Scheme’s property price ceiling.

Citing the New Housing Delivery 2023 Report from the Society of Chartered Surveyors Ireland, Ms Treacy said the average cost of delivering a three-bedroom semi-detached house in Tipperary is €371,000. 

This is up from between €285,000-€365,000 in 2022.

“There is a story to be told in that,” said Ms Treacy. 

The CIF says Government schemes have helped the industry, but the price ceiling for the Help to Buy Scheme for the county of €350,000 is too low.  Clancy Construction’s John O’Shaughnessy said other counties like Kilkenny are more viable.

“I would love to be building in Tipperary,” said Mr O’Shaunessy.

 Teamar Property Developments Director Tom Gallahue said the biggest issue in Tipperary is getting finance.

 “In Tipperary, no bank will come in,” said Mr Gallahue.

He said once the house is built, the developer must hold onto the property until a buyer takes it over.

“While we would like to build here, I have to finance everything. If there is someone willing to give you a few pounds, you may as well be shooting yourself in the foot,” said Mr Gallahue. 

Cllr Máirín McGrath said something needs to change if builders can get more value from a home in urban areas than in Tipperary.

“There is no incentive to build in Tipperary because they can’t get the same value from the Help to Buy Scheme as in urban areas,” said Cllr McGrath.

Cllr Marie Murphy agreed, saying why would builders build in Tipperary when they can get more in Kilkenny or Waterford?

Cllr David Dunne asked the representatives how much of a profit margin developers need to make a house viable.  He said he understands finance is often an issue and knows of cases where people have the income required to get finance, but banks won’t approve the application.

“This seems like madness to me,” said Cllr Dunne. 

Executive CIF Southern Region George Gill, said he would not call it a “profit margin” but rather a margin. 

He explained it needs to be around 10-15% before the banks will approve finance for the development.

Mr O’Shaughnessy said they need that margin to move on to the next development and to make money.

“Like every business, we have to make money. I won’t apologise for it. It is what is needed to survive,” said Mr O’Shaughnessy.