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Development Charges;
Just when you thought that you had budgeted for all of the extra costs of building a new house or adding an extension to an existing property another cost lifts its ugly head, The Development Charge.
This can mean different amounts to everyone who has been granted planning permission.
The reason for the charge is to cover the cost to the local authority for the extra pressure on facilities within the area of the build, for an example connection to the local water supply or to the sewage system. This charge is also meant to help with building better roads in the area and helping to build local community buildings in that area.
Although this seems like a new charge, builders and developers have been paying it to the local authorities for many years, the difference now is that it has increased and will affect self builders as well as the developers. Just how much you will pay depends on where you are going to live and under which authority you will come.
As far as extensions, you can still build your 40 square metre extension without planning permission so there is no levy, but as soon as you go over this size you will have to apply for planning permission which will mean the levy may be charged on anything over the 40 square metre area.
Each Authority has its own charges so before you apply for planning permission it is best if you go into your local office and find out the cost in the area that you plan to build in.
Below are a few examples of cost from different authorities ;
Based on a building of 180 square metre property.
Cork city and surrounding area either rural or urban where facilities are existing , after the first 40 sq. metre are taken away you will pay €56 per sq. metre on 140 which means you will pay €7,840 to the Cork local authorities.
However if you are in an area of Cork that does not have any services available you could pay between €18 and €47 per sq. metre.
The rate for the same house in north or west Cork ranges from €18 to €44 per sq. metre.
Dun Laoghaire Rathdown charges are €100 per sq. metre, after the 40 sq. Metres has been removed from the calculation the cost would be €14,000.
In contrast Kerry Authority does not charge for an extension if the facilities are already there and have a standard price of €1,265 for water and €2,535 for sewage services.
As you can see there is a big difference in charges but you must allow for these in your budget as you will have to pay some money to your local authority before you start your build.
Don’t let these charges put you off building your dream home as you would be paying them indirectly to developers even if you didn’t self build.
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