Budget implications for the Construction Industry

sydthebeat

cleared this with muffler, so please keep posts specifically pertaining to the construction sector please.

ENVIRONMENT, HERITAGE & LOCAL GOVERNMENT

Gross Expenditure for this Vote in 2009 is €3,114 million, a decrease of €62.6 million (€12.3 million increase on Current and €74.8 million decrease on Capital) relative to the 2008 forecast outturn. The key policy measures and adjustments associated with these resources in 2009 and later years are as follows:-

• under the housing programmes, while there has been a decrease on the 2008 provision, very significant funding continues to be provided for both Capital and Current housing programmes:
• additional funding of €10 million is provided in 2009 for the Voluntary and Co-operative housing sector under the Capital Loans and Subsidies Scheme
• a further €3 million is provided for the provision of homeless accommodation
• there has been a decrease of 30% in the affordable housing provision for 2009. In line with movements in housing market affordability the level of subsidies for affordable housing purchases is being scaled down
• a further €39.5 million has been provided under the Rental Accommodation Scheme to meet carryover and new commitments in 2009 (reflecting the transfer from the Department of Social & Family Affairs of a further group of households previously in receipt of Supplementary Welfare Allowance);
• Water Services Investment Programme has been provided with an increased provision of €89 million (+19%) to continue infrastructural support for social and economic development;
• the reduction of 63% in funding the landfill remediation programme in 2009 will require local authorities to re-profile necessary works over a longer period with the most urgent works being prioritised;
• funding for Urban Regeneration in 2009 has decreased by 95%. This reflects the completion in early 2008 of the final funding allocations for urban renewal grants under the two Regional Operation Programmes (2000-06). The introduction of a new programme in 2010 will be examined in 2009 subject to the availability of resources.

The detailed 2009 Estimate for this Department is set out at page G.53.


According to the Independant:

With the global credit crunch hitting the property market, the government has pledged to take an equity share in affordable housing. €1.65 billion will be spent on the sector as a whole. Local authority mortgage schemes are set to increase the maximum amount they have been making available to would-be home owners.

Personally, i dont see the co-relation between what the independant have published and the actual wording, but taking them to be correct.... what do people think???

Is it right that the government should 'bail out' the banks and developers again by buying up unsold new housing stock??

Will this reinvigorate the housing market?

What does it mean for the construction sector?

Will architects be inundated with application for 'change of design' to augment developments to affordable standards?

No funds for urban regeneration in 2009!!!!!

discuss.......

and please keep as close to the topic as possible..... no bitching about 1% levys etc....

fishfoodie

Linky to Dept Of Env Press Release.

Given that the money is specifically aimed at people earning well in excess of the average industrial wage, & that the houses must be new. I'd say these measures will have little, or no effect on the building industry, other than possibly helping to clear so of the existing newly-built stock.

I can't see how anyone can be anything other than cynical about these kind of measure in budgets.

sydthebeat

fishfoodie wrote: »

Linky to Dept Of Env Press Release.

Given that the money is specifically aimed at people earning well in excess of the average industrial wage, & that the houses must be new. I'd say these measures will have little, or no effect on the building industry, other than possibly helping to clear so of the existing newly-built stock.

I can't see how anyone can be anything other than cynical about these kind of measure in budgets.

this 'homechoice loan' thing is basically sub-prime lending.

Say you earn in excess of 40K per annum....
The cheapest 3 bed semis in high-demand areas will floor out at 285K
you go to your bank for a mortgage but they say "your looking for 7 times your annual income, therefore no, in our opinion you cannot service this mortgage".... refusal letter issued
You can then go to this 'homechoice loan' with this refusal letter, and the government will give you the same mortgage for the same house....????

i dont get it???

bamboozle

sydthebeat wrote: »

this 'homechoice loan' thing is basically sub-prime lending.

Say you earn in excess of 40K per annum....
The cheapest 3 bed semis in high-demand areas will floor out at 285K
you go to your bank for a mortgage but they say "your looking for 7 times your annual income, therefore no, in our opinion you cannot service this mortgage".... refusal letter issued
You can then go to this 'homechoice loan' with this refusal letter, and the government will give you the same mortgage for the same house....????

i dont get it???

u hit the nail on the head syd! Our Government clearly didnt take notice of the fanny mae debacle over in the states!