Labour has announced plans to introduce a super-tax on co-living units across Ireland should the party be in a position to do so after the next general election.

Developers of planned co-living units have been warned of a potential super tax of €10,000 per unit as Labour seeks to progress the development of affordable homes.

This announcement comes on the back of a 208 unit co-living scheme which was granted permission in Dún Laoghaire. Labour Housing spokesperson Jan O'Sullivan slammed the approval, condemning the €1,300 a month rent for one person as "totally unrealistic".

Deputy O'Sullivan said: "The profit driven motives of developers mean that they are exploiting planning law to ensure they get the maximum return on development sites. That is why so many co-living schemes are now seeking permission. The housing policy expert Mel Reynolds has shown that these developments are making apartment building less likely as more profit is made per square meter from co-living over apartments. The same pattern is also evident in the glut of unaffordable student accommodation that has been built in Dublin city centre.

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"Firstly, the Labour Party if in a position to do so after the next election, would amend the development acts to restrict any further planned co-living schemes.

"While there is little we can do once the developments are built, we can impact the economic viability of developments by putting a super tax on the individual properties.

"Such a levy could be placed through the local property tax system. For example, a super tax of €10,000 per unit would quickly make these schemes unviable.

"This is a warning to developers seeking planning permission for co-living developments and undertaking building now, that the Labour Party would seek to put a super tax on each co-living unit. We want to see affordable homes and sustainable communities built. Co-living units are developer led, profit driven, and an effort to exploit restricted supply."

(CM/JG)