Cheaper loans for builders un­der new ‘Home Build­ing Fi­nance’ ini­tia­tive

The Kerryman (North Kerry) - - LAND PROPERTY & HOME -

DE­TAILS of a new scheme to help kick start Ire­land’s hous­ing dilemma were an­nounced as part of Bud­get 2018 as a €750 mil­lion in­jec­tion of funds is to be made avail­able un­der the ‘Ire­land Strate­gic In­vest­ment Fund’ (ISIF).

Min­is­ter for Fi­nance Paschal Dono­hoe said the new mea­sures are for com­mer­cial in­vest­ment in hous­ing fi­nance and funds and are to be made avail­able through a new body called ‘Home Build­ing Fi­nance Ire­land’ (HBFI). It’s likely this new state body will re­quire some leg­is­la­tion and will need to be staffed in the com­ing weeks so chances are it may not be fully op­er­a­tional un­til early 2018. But at least it gives some builders an op­por­tu­nity to plan in the in­terim pe­riod.

The an­nounce­ment fol­lows on the back of re­cent govern­ment spec­u­la­tion that a re­cast NAMA would sup­ply cheap loans to de­vel­op­ers to try and ac­cel­er­ate the build­ing of new homes and apart­ments. How­ever, it’s thought the HBFI will now in­crease the avail­abil­ity of funds for com­mer­cially vi­able and res­i­den­tial de­vel­op­ment projects.

Min­is­ter Dono­hoe said the new en­tity will use NAMA’s ex­per­tise in res­i­den­tial de­vel­op­ment fund­ing while stress­ing the new mea­sures would also tie in with the govern­ment’s ex­ist­ing plans to de­liv­ery 30,000 houses and apart­ments over the pe­riod to 2021 with po­ten­tial to fund the con­struc­tion of an ad­di­tional 6,000 homes.

With some banks still adopt­ing a ‘risk averse’ pol­icy when it comes to con­struc­tion re­lated loans, the new scheme should help make cheaper loans avail­able to builders which would be re­paid as homes are sold.

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