INDEPENDENT IRELAND MEP Ciaran Mullooly has a five-point plan to address house prices across Ireland and the EU in his new role as vice-chair of the European Parliament’s housing committee.

The “practical-based solutions” that the Midlands-North-West MEP is working towards proposes VAT rebates for first-time buyers, better funding models for charity housing projects and the use of State land for public-sector worker accommodation.

Mullooly told The Journal that he hopes his ideas, which he admits need some more legislative scrutiny and debate, can be included in the final report by the committee later this year.

That report will later be delivered to the desk of Dan Jørgensen, the Danish European Commissioner with the responsibility to deliver a new EU-wide housing framework, who will then draft a list of directions for member states to take on housing.

When the plans for the EU to tackle the housing crisis in Europe were announced, European Commission President Ursula von der Leyen said its goal is to launch an affordable housing scheme on the continent.

Government hopes that this EU assistance can aid efforts in Dublin and turn a page on the crisis, as each party of the last coalition supported calls in their European manifestos for the establishment of a dedicated commissioner on housing.

“Getting us out of the mess we’re in is what I’m focused on,” Mullooly said.

He added while issues such as short-term lets have taken stage at the opening meetings of the special committee, he does not expect that it will steal much of the spotlight.

The former RTÉ journalist was elected to his vice-chair position on behalf of the centrist political group, Renew, in the European Parliament alongside fellow Irish MEP and vice-chair from Fine Gael and the European People’s Party, Regina Doherty

He said that his focus in the role is to reduce the cost of homes and encourage methods to increase the construction and development of new units.

One way he believes this can be achieved is removing VAT on materials used to build homes for first-time buyers or from the cost of a home when a new homeowner is purchasing it.

“I’m looking for practical ways to somehow support first-time buyers in the uphill battle that they’re up against. They’re probably things that you could even do in a 12-month period of time.

“The problem with the housing brief is that there’s so much there that cannot be resolved in a short period of time. It wrecks your head, there’s so much to be done,” he said.

Mullooly has also floated the idea to remove capital gains tax on houses being sold to first-time buyers. While the EU has a limited authority to call for such measures, the MEP hopes similar directions can be given to member states by Jørgensen.

He admits some of the ideas need further debate at committee level. Asked about the cost of the plan, he said the “hit” the State might take from these measures would be “insignificant” compared to the benefit it would bring to first-time buyers.

Mullooly estimates that his tax rebate ideas may remove between €40,000-€50,000 from house prices – making a deposit more accessible.

He is also seeking to allow charities to avail of 80% of allocated EU funding for housing projects before construction begins, rather than the organisations having to depend on donations and state contributions to make up the difference. 

Separately, the MEP seeks to make it easier to be granted planning permission when building or renovating properties as independent-living facilities. He claims far too many disabled people in their 40s and 50s are in the nursing home system in Ireland.

A 2021 report by RTÉ News found that 1,300 people under 65 years old were living at the facilities, despite a government action plan being established to curb the issue. Some of the residents were in aged in their 20s.

Mullooly said that measures can be taken to provide properly-adapted accommodation for that cohort, which would also improve their standards of living.

The special committee will continue its work for another ten months, and will finish a report with recommendations on housing in Europe.