Chamber calls for targeted tax incentives to tackle housing crisis and revitalise city centre

Waterford Chamber has formally addressed Minister for Housing James Browne, urging the Government to consider a strategic, targeted approach to tax reliefs that will drive housing supply and urban renewal without incurring costs to the Exchequer.

Following recent discussions on tax incentives for housing, where Taoiseach Micheál Martin confirmed the Government’s openness to tax breaks for private developers while Finance Minister Paschal Donohoe ruled out the reintroduction of broad-based reliefs such as Section 23, Waterford Chamber has called for a nuanced approach to addressing housing shortages.

In its letter to Minister Browne, Waterford Chamber highlights the untapped potential of underutilised upper floors in commercial and mixed-use buildings, which, if incentivised correctly, could provide much-needed student and tourism accommodation.

“The economic downturn was not caused by Section 23 tax reliefs but by irresponsible lending practices,” the Chamber stated. “A well-structured, focused approach to tax incentives can provide a significant boost to housing supply without encouraging speculative investment.”

A Solution for Housing and Urban Regeneration
Waterford Chamber proposes a refined Section 23-style relief program that prioritises:

• The conversion of upper floors in city and town centre buildings into residential units.
• Development of student accommodation to support the expansion of South East Technological University (SETU).
• Short-term rental conversions to meet tourism demands.

By providing property owners with tax relief on renovation costs, these conversions could become financially viable in the short term, accelerating housing supply where it is needed most.

Economic and Social Benefits
Waterford Chamber emphasises that such an initiative would align with the Government’s Living City Initiative and provide multiple economic and social benefits, including:

• Increased footfall and vibrancy in city centres, benefiting local businesses and reducing dereliction.
• Freeing up family homes currently occupied by students.
• Creating economic opportunities through new businesses catering to students and tourists.

With Waterford’s growing student population and tourism industry, incentivising the redevelopment of vacant upper floors will address housing shortages while driving economic activity and urban renewal.
Waterford Chamber urges the Government to act swiftly in implementing targeted tax incentives that will stimulate sustainable development without repeating past mistakes.