New figures released reveal that the Home Renovation Incentive Scheme has exceeded an estimated €1 billion in works since it was introduced in 2013, with Cork homeowners investing over €109 million in value.
The majority (70%) of the spend has been undertaken in just three counties; Dublin, Cork and Kildare. Window replacements, kitchen upgrades and general repairs and renovations top the list of works completed under the scheme.
The tax-based incentive scheme is due to come to an end on 31st December 2016 and in its pre-budget submission, Hardware Association Ireland (HAI), the national representative body for hardware/DIY retailers and builders merchants, called on the Government to extend the scheme by 24 months in order to achieve greater penetration and awareness across Ireland, particularly in rural areas.
ELIGIBLE TAX CREDITS
The Revenue figures reveal that since October 2013, over 65,000 works have been registered with the scheme across more than 45,000 individual properties. The majority of properties that registered for HRI are urban-based, with Dublin by far dominating with €560m in total works registered, followed by Cork at €109.5m. The cumulative total tax credits eligible to be claimed to date is €71.85 million.
The top 5 works, as a percentage of total works by number, are: Window replacement (23.13%); Kitchen renovations (18.80%); General repairs and renovations (13.12%); Home extension (9.44%); and ‘Other works unspecified (6.78%).
LOW AWARENESS OF HRI OUTSIDE OF DUBLIN
The Revenue statistics coincide with new research released today by Hardware Association Ireland (HAI), which reveals that more than half (52%) of homeowners have not heard about the HRI scheme, with awareness highest (58%) among those aged 50-64 in Dublin. It’s worth noting that the research shows that those aware of the HRI scheme are twice as likely to carry out renovations as those unaware of it, which supports Hardware Association Ireland’s call for the scheme to be extended to December 2018.
The HAI research also reveals the significant latent potential that exists for the HRI scheme, with one in five (21%) homeowners in Ireland planning to carry out home renovations in 2017, and 15% of that number planning to spend above the current qualifying spend minimum of €4,405+.
LOWER FLOOR + RAISE CEILING
The research, commissioned by the HAI and carried out by Behaviours and Attitudes (B&A) in August 2016 among 1,000 homeowners, reveals that one in two homeowners who plan to carry out renovations in 2017 will spend €5,000 or less, with 17% wishing to spend up to €3,000 – this currently is below the existing qualifying spend of €4,405 and based on this insight, the HAI is asking Government to consider lowering the floor of the qualifying spend to €3,000 and increasing the ceiling to €50,000 to help incentivise homeowners to embark on latent home improvement works and deliver much-needed growth stimulus to builder merchants and suppliers.
