Mr. Aidan Houton:

The SCSI, which was referred to earlier, came up with eight house types it had looked at. Somebody put it well earlier in saying the SCSI had one hand tied behind its back. It was given parameters and could not price for foundations or the current regulations. It could not even include in its square-foot rate floor coverings, such as a simple carpet or laminate flooring. I looked at a 2,500 sq. ft. house, for which the SCSI had a rate of €147 per square foot. I allowed for an inflation rate of 9%, which is a conservative estimate given the volatility in the price of materials, as builders will know. Every second week, people are getting an email indicating that the prices of materials are increasing. For example, last week I received an email stating that the price of insulation will go up by between 20% and 25% on 1 July. I added 9% to account for inflation to the rate of €147 per square foot set by the SCSI for a standard four-bedroom house, one of the most common house types in Donegal. I then worked out it would cost approximately €10,000 to take out foundations, dispose of the materials and put in new foundations. This worked out at approximately €4 per square foot. Building to the current regulations adds approximately €11 per square foot. Including floor coverings, whether tiling, laminate, carpet or whatever else, would add a further €5 per square foot, giving €147, plus €13 per square foot to account for inflation, €4 per square foot to account for foundations, €11 per square foot to cover the current regulations and approximately €5 per square foot for floor coverings, it amounts to €180 per square foot. That is what it will cost to complete a 2,500 sq. ft. house from start to finish under current regulations.

The other parameter I ask the committee to consider is in regard to smaller houses. There are items that will cost the same amount regardless of house size, whether it is 2,500 sq. ft., 2,000 sq. ft. or 1,500 sq. ft. These include kitchens, stairs, fees and connecting and disconnecting electricity. The final amount was approximately €50,000. Divided by 2,500, that works out at €20 per square foot over a 2,500 sq. ft. house, €50 per square foot for 1,000 sq. ft. house. There is a €30 per square foot difference between a small house and a bigger house. It will be €180 per square foot for a 2,500 sq. ft. house but for a 1,000 sq. ft. house, it will be approximately €210 per square foot for the same specification with a smaller size. Smaller houses will cost more per square foot to build than bigger houses.