The Construction Industry Federation (CIF) has said the supply of housing in Ireland could double within two years, if the Government adheres to a seven-step plan.

In its Budget submission report, the CIF has suggested that the measures could see as many as 20,000 houses built per year by 2016.

The seven steps being put forward by the Federation are:

• Create incentives for new home purchasers such as a property tax rebate, a partial rebate of the development levies paid to developers and additional tax allowances for first time buyers.

• Replace Part V with a 1% levy across the sales of all housing - new and old.

• Introduce a temporary 9% VAT rate for residential construction.

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• Create a special development finance fund.

• Establish a 'Help to Buy' scheme.

• Create a tax incentivised special savings scheme.

• Restore full interest relief for investment in residential property for letting purposes.

Commenting on the plan, CIF's Director General, Tom Parlon, said: "Everyone knows there is a supply issue when it comes to housing in this country. We've had so little building taking place over recent years that there simply aren't enough houses to meet the demand. If these seven steps were followed it would have a transformative impact on house building in this country.

"By introducing these measures we believe the country would get a supply of housing fit to meet its needs. It would end the rapid house price rises we are currently facing in Dublin – rises which are likely to continue until we start building sufficient housing for the property market."

The proposals are included in the CIF's Pre Budget Submission to the Irish Government and also include a number of other measures to increase employment in the sector and strengthen construction activity.

More information on the plans can be found here.

(JP/MH)