New figures released today reveal that the Home Renovation Incentive Scheme (HRI) has exceeded an estimated €1 billion in works since it was introduced in 2013, with the majority (70%) of the spend 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, HAI is calling on the Government to extend the scheme by 24 months in order to achieve greater penetration and awareness across Ireland, particularly in rural areas.
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 Revenue statistics coincide with new research released today by 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+.
Commenting on the figures and research findings, Annemarie Harte, Chief Executive of Hardware Association Ireland said: “Hitting over €1bn in value of works is a hugely significant and positive milestone for the Home Renovation Incentive Scheme, and we know from our members – builders merchants and DIY retailers – that it has provided a much-needed boost to an industry that has been decimated because of the economic downturn in recent years.
“While it’s hugely encouraging to see Irish homeowners using the scheme to improve their properties, it’s discouraging to learn how little of this benefit is reaching more rural parts of Ireland, so we strongly recommend that the scheme be extended until 2018, and more awareness generated to help boost engagement among the other 23 counties in a more pronounced and impactful way.”