Monday 22nd June 2026
IPAV calls for Special Government SME Builder/Developer Supports to Achieve Housing Targets
IPAV, the Institute of Professional Auctioneers & Valuers, says the potential of SME builders and developers to impact the supply of homes is not being recognised in national policy, and it is calling for a series of measures in the forthcoming budget to be directed towards the sector. These include:
- Scaling up Home Building Finance Ireland (HBFI) funding for SMEs and lowering effective borrowing costs.
- Expanding HBFI’s capital base and subsidising or capping interest rates for smaller projects, given that HBFI’s small development loans currently carry interest margins up to 7.5% over Euribor
- Introducing state-backed equity co-investment funds targeting SME housing projects to share risk and attract private finance.
- Establishing an ‘SME Developer Accelerator’ programme to help small builders navigate planning, procurement, and compliance. Provide one-stop-shop support (e.g., simplified legal templates, modular housing guidance) to reduce overheads for small projects;
- Tightening HBFI’s mandate to prioritise smaller developers. Large firms dominated HBFI’s initial loan allocations, contrary to original intent. Recent changes show improvement, with over 80% of HBFI’s €3.3bn approvals by end-2025 were for loans under €20m, aimed at SMEs but continued vigilance is needed,
Genevieve McGuirk, IPAV’s Chief Executive says most new homes in Ireland are built by small builders, yet these SMEs face disproportionate challenges. “They lack the access to capital and economies of scale that large developers enjoy, making it difficult to finance and complete projects.
“Large developers are generally not active in regional towns and rural areas,” she says. “If we’re to achieve 60,000 homes per year by 2030, SMEs must be empowered to greatly increase their contributions. Currently, many are hindered by expensive loans, difficulty obtaining equity, and capacity constraints.”
Boosting SMEs is one of the most potent ways to increase housing supply and meet national targets, while diversifying the industry and ensuring no town or county is left behind in the housing solution, according to IPAV
In its budget submission IPAV is also calling for:
· The Capital Gains Tax rate to be reduced from 33% to 20% to incentivise the sale of underutilised assets, particularly development land, and stimulate domestic reinvestment;
· A more aggressive strategy to bring vacant and derelict properties back into use through expanded grants and targeted tax measures, with a stronger focus on unlocking multi-unit and mixed-use buildings in town centres;
· Stemming the flow of small landlords from the market by introducing tax relief on rental income for small-scale landlords (e.g., those with 1–3 properties) to significantly lower their effective tax rate and bring it closer to corporate landlord levels;
· The elimination of stamp duty for first-time home buyers (FTBs) purchasing second-hand residential properties below a certain value (e.g., up to the median price of ~€500,000). This would remove the current tax disincentive against buying existing homes for this cohort of buyers who do not qualify for the Help-to-Buy or the Frist home scheme;
·Measures to Incentivise rightsizing and age-friendly housing.
The housing crisis is eroding our social fabric and undermining future competitiveness, IPAV says. Budget 2027 is the moment to make transformative decisions. By adopting these recommendations, the Government can demonstrate bold leadership and deliver tangible results; more homes, fairer markets, and greater security for all.
To read IPAV’s submission, please click: IPAV 2027 Pre-Budget Submission