The Irish government plans to unveil tax incentives for small landlords in the upcoming budget in an effort to retain rental housing supply, Finance Minister Michael McGrath announced Monday. With rising interest rates driving landlords out of the market, the government aims to bring stability through measures that balance landlord retention, increased construction, and tenant protections. Details are still being finalised, but the tax breaks for small landlords would be tied to providing secure tenancies, according to McGrath.
Housing Minister Darragh O’Brien is also pushing to expand an apartment construction subsidy program to boost rental housing stock. The ministers emphasised the need to increase affordable rental supply while maintaining standards for tenants.
What are the tax incentives?
The Irish government plans to offer tax incentives to encourage small landlords to remain in the rental market, Finance Minister Michael McGrath announced Monday. Speaking in Cork at an employer group meeting, McGrath said too many landlords have exited the market, reducing rental housing supply.
“We’ve seen too many landlords exit the market. Tax can be a factor in some cases,” McGrath stated. He cited rising interest rates and landlords selling after reaching positive equity as other factors.
McGrath acknowledged some landlords’ unhappiness with increased regulation but stressed oversight is essential to maintain standards. He said the government’s priority is a steady, long-term supply of rental accommodation.
Any new landlord support will require a commitment to providing secure tenancies, McGrath emphasised. The exact details of the tax breaks are still being finalised.
Housing Minister Darragh O’Brien is pushing for tax relief for small landlords, McGrath confirmed. O’Brien also wants to extend an apartment construction subsidy program, which would assist developers in building more rental units.
Under this proposed subsidy expansion, the government would acquire any unsold units and lease them for cost-rental housing. The state has already been partnering with developers to acquire apartment blocks for such leasing arrangements.
McGrath said final decisions on rental sector tax changes are still pending but expected within weeks. The goal is to bring stability through measures in the upcoming budget.
Enterprise Minister Simon Coveney echoed the need to increase affordable rental housing supply and retain landlords. He acknowledged “a real supply challenge” currently.
Coveney said ultimately the rental market will stabilise with a significant boost in supply, including more affordable housing construction. The government’s budget aims to increase supply, assist tenants, and provide landlord incentives, he noted.
Both ministers emphasised the priority of supporting the rental market with increased supply while also maintaining standards for tenants. The pending tax break details and budget measures will strike a balance between those goals, they indicated.
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