Development levies are to be waived in an effort to boost housing supply, the Government has announced. 

Presently, development fees are used to build the vital infrastructure - such as water, sewage and roads - needed by new properties. 

In a plan to be brought before the Cabinet today, such fees will be dropped in the short-term and the costs will be paid for by the State. 

Speaking at an event in Belgium, Taoiseach Leo Varadkar said the measure will cost “hundreds of millions of euro” and will be in place for several years. 

He said it was “difficult to say for sure” how many additional homes would be built as a result but that it would help the Government reach its target of 30,000 new homes every year. 

The subvention to developers could be as high as €150,000 but the Taoiseach rejected the idea it was in any way a gift or giveaway. 

“I absolutely know it’ll be misrepresented that way and presented that way. I totally reject that presentation,” he said.

A new development of 800 homes presently under construction in Carrigaline County Cork. Image: David Creedon/Alamy

Defending the Government’s record on housing, the Taoiseach said more social housing is being built than at any point since the 1970s and 400 first time buyers buy a property every week - a figure comparable to the Celtic Tiger. 

The Cabinet is also expected to sign off on a proposal to increase grants for those who renovate vacant homes. 

Last year, there were 29,851 new homes built in Ireland, according to the CSO; however, some in the sector have predicted that figure could drop in 2023 due to the surging price of building materials.

Main image: An apartment building under construction in Palmerstown, Dublin, Ireland. Pitcure by: Alamy.com