The Construction Industry Federation (CIF) is calling on the government to implement policies in the next budget.

The CIF has proposed six steps for inclusion in October's budget, aimed at increasing levels of house building as well as stimulating further recovery in our economy.

CIF has called on the government to implement the following policies in the upcoming budget:

• Introduce a 'Help to Buy Scheme' to assist first time home buyers

• Introduce a tax incentivised savings scheme for future purchasers of new homes

• Replace Part V – social housing obligations for new developments – with a 1% levy on sale of all residential units

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• Introduce a temporary VAT rate of 9% for residential construction for a two-year period

• Restoration of 100% tax deduction on the interest expense incurred on loans to investors in residential property

• Reduction of Capital Gains tax to 20%.

Tom Parlon, Director General of the CIF, said: "As both the economy and the construction sector recover, these are the key challenges that must be addressed in order to maintain growth in the economy.

"The provision of homes requires input from our industry first and foremost to construct enough houses to meet the demand. This can only be achieved however with a supportive regulatory and policy environment from our Government.

"In demographic terms, population growth is predicted to reach 600,000 between now and 2031, 60% of which will need to be accommodated in the greater Dublin area.

"Ireland needs buildings and infrastructure to support its economic growth, support continued foreign direct investment and maintain the country's economic competitiveness in stimulating further growth."