Rising cost of house extensions due to concrete levy revealed

The real cost of the concrete levy for house extensions has been revealed with an average extension set to cost €500 more at the very least, a new survey has found. 

The vast majority of those surveyed from the construction industry said they believed the cost of the levy would be passed on to consumers. 

The 10 per cent levy on concrete was introduced in Budget 2023. 

Onlinetradesmen, Ireland's leading home improvement marketplace, released the results of a survey on Thursday of independent trade professionals regarding the government's proposed concrete levy in budget 2023 and its impact on home improvement costs into 2023.

Based on over 1800 respondents nationwide, including sole traders and small builders, the survey indicated a 91% dissatisfaction rate within the sector on the current concrete levy.

When surveyed as to whether the increases in concrete costs would be passed on to consumers for home improvements, 83% responded that it would.

Based on an average extension size of 50 square meters, the 10% levy on concrete products will add up to €500 in costs per project.

The levy will also be applicable to the materials for many domestic refurbishments, maintenance and landscaping projects where concrete based products are required.

“The survey results show clearly that the Irish trade sector is not in favour of the concrete levy introduced in the budget and they would be forced to pass on the increase in costs,” said Ted Laverty, CEO of Onlinetradesmen.

“In the current inflationary environment where homeowners are now reconsidering home improvement projects due to rising material and labour costs, this levy will put further pressure on the sector into an economically uncertain 2023.

“In our view the levy needs to be scrapped or restructured to something more sustainable for the home improvement sector,” Mr Laverty said.