9% VAT for construction will help boost delivery of student accommodation – O’Connell

The extension of 9% VAT to student accommodation would help provide more purpose-built accommodation for students, a Fine Gael TD has said.

Deputy Maeve O’Connell has today welcomed confirmation from Minister for Finance Paschal Donohoe TD of the proposed extension of 9% VAT on construction to student accommodation.

Budget 2026 reduced the cost of construction for apartments to 9% to drive delivery of new homes.

Speaking today, Deputy O’Connell said: “I am really pleased Minister Donohoe is committed to extending this measure to purpose-built student accommodation.

“Fine Gael believes the delivery of student accommodation is an integral part of the response to our housing challenges.

“Purpose built student accommodation can free up private rental accommodation and stop students competing with families for somewhere to rent.

“By increasing our stock of purpose built student accommodation, we can also help ensure that more families and couples can secure a home without the pressure of competing with students.

“It also ensures fewer students have to commute and can fully enjoy their college life.

“The 9% rate introduced by Minister Donohoe is already proving to be a game changer. Builders are reporting there will be a significant increase in the number of apartments built.

“I hope the extension of this to student housing will yield the same result with more student accommodation,” concluded Deputy O’Connell.