Dáil Éireann Debate, Thursday - 18 December 2025
218. Deputy John Paul O'Shea asked the Tánaiste and Minister for Finance if he will consider targeted fiscal measures to accelerate housing supply, including tax incentives for brownfield redevelopment and activation of vacant sites; and if he will make a statement on the matter. [69156/25]
View answerAddressing Ireland’s housing shortage requires a substantial increase in the supply of new homes for purchase and rent. To deliver the infrastructure that a growing population and a growing economy need, this Government is determined to use all levers at our disposal to deliver policies that increase supply and alleviate pressure, so that more people can access a home.
Budget 2026 introduced a suite of targeted taxation measures focused on increasing construction viability with a view to boosting housing supply. These include:
• a reduced VAT rate for newly constructed apartments,
• a corporation tax exemption for cost rental income,
• an enhanced corporation tax deduction for apartment construction costs, available in respect of both new-build and change-of-use redevelopments,
• an enhanced and expanded living city incentive,
• extensions to the residential development stamp duty refund scheme and the retrofitting deduction for landlords, and
• the development of a new derelict property tax, to replace the derelict sites levy.
I am acutely aware that there is a need for a continuing focus on measures to address the housing challenges we are facing today. The newly released National Housing Plan “Delivering Homes, Building Communities: An Action Plan on Housing Supply and Targeting Homelessness” targets the delivery of 300,000 new homes by the end of 2030. The Government has provided for the largest ever capital investment in the history of the State - €275 billion in infrastructure over ten years through the National Development Plan. We are also committed to delivering the policies required to significantly accelerate delivery by the private sector through regulatory reform, direct supports and tax incentives.
In addition to Budget 2026 measures, my Department is delivering on a number of actions in the Government’s new housing plan, including €400m additional equity funding from ISIF (Irish Strategic investment Fund) and €200m additional debt funding from HBFI (Home Building Finance Ireland).
I am confident that the measures we have implemented to date, coupled with new measures in the housing Plan, as well as the Government’s wider programme of investment and reform, will allow us to deliver the step-change needed in our housing system, and to see increased delivery of housing across all available land stock, including brownfield redevelopment and activation of vacant sites. For my part, I remain committed to delivering on the commitments in the Programme for Government, including continuing to consider and implement targeted fiscal measures to accelerate housing supply.
