Dáil Éireann Debate, Wednesday - 8 October 2025
33. Deputy Paul Murphy asked the Minister for Housing, Local Government and Heritage his views on whether renters or landlords will be happier with Budget 2026; and if he will make a statement on the matter. [53814/25]
Amharc ar fhreagraA central focus of the 2026 budget is to ensure that everyone has access to a home, whether to purchase or rent, at an affordable price.
To support the rental sector, in 2026 the Residential Tenancies Board (RTB) and other advocacy services will receive funding of €24 million. In addition, €10.5 million will be provided for local authority inspection activity in the rental sector to ensure compliance with rental standards. The Government is also committing over €570 million to support households in the private rented sector through the Housing Assistance Payment and the Rental Accommodation Scheme.
Budget 2026 extends the Rent Tax Credit, which was due to expire the end of 2025 for a further three years, to the end of 2028 and this is a measure aimed at those who do not get any other housing supports. Parents who pay for their student children in full-time accommodation will be able to claim the credit.
The tax relief available to landlords for qualifying retrofitting expenditure on rented residential properties has been extended by a further three years, now applying until 31 December 2028.
The reduction on the VAT rate on the sale of new apartments which will be decreased from 13.5 per cent to 9 per cent will contribute significantly to improving their viability which will help to stimulate supply and is an addition to the suite of actions already being taken by Government to address the apartment viability challenge. Apartments are a crucial component of our housing system moving forward in terms of our compact growth policy and improving affordability and choice in our private rental sector.
The Government remains focused on growing the supply of much-needed rental accommodation by keeping existing landlords in the market and attracting new landlords, as that increased supply leads to more options for renters and lower rents. This needs to be done in tandem with ensuring strong and balanced tenancy protections for both tenants and landlords.
In order to boost the supply of homes available for rent, on 10 June 2025 the Government approved modifications to rent controls, to come into effect on 1 March 2026, which will include an incentive to bring new apartments to the market. The changes will also provide significantly stronger tenancy protections and are finely balanced between the interests of tenants and the need for further private investment in the rental market.
Legislation is being prepared and will be published later this year to give effect to these policy measures. Further information is available here: www.gov.ie/en/department-of-housing-local-government-and-heritage/press-releases/government-to-introduce-major-reforms-to-the-rental-sector/.
