The low level of housing supply will continue based on the lack of measures announced in Budget 2015, according to the Construction Industry Federation (CIF).

The CIF believes that, when coupled with the Planning Bill and the potential changes in bank lending proposed by the Central Bank, it will stymie the construction of private housing.

"We welcome the abolition of the windfall tax, which should bring more development land to the market," said CIF Director General Tom Parlon.

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"However the Budget does nothing to stimulate private house building activity. We have a demand for up to 25,000 housing units annually, but the Budget addresses the housing needs for up to 2,500 persons on the social housing waiting lists.

"The measures to support new house purchasers save their deposit will have little to know effect. You are talking about a saving of approximately €40 per annum for €5,000 saved. Savings need to be more incentivised so that the required deposits can be put together.

"The Budget was a lost opportunity to stimulate private house building activity to meet demand. We have seen no action taken to cut the blockages to the industry in this Budget."

(CD/JP)