The government is considering extending the rent-a-room initiative to include not all landlords. The scheme was created to alleviate the housing shortage.
The initiative, allows homeowners to rent a room out in their property without paying tax on the first 14k of rental income. This scheme has seen an uplift across Ireland which in turn has created more affordable housing, Now the government is considering expanding the scheme to landlords as well. It wouldn’t just be for landlords renting out rooms, it would see any landlord renting any property get a tax break on the first €14,000 of rental income.
Speaking during the launch of Respond’s annual housing report in Dublin,, Minister O’Brien announced that in Budget 2024, they will be implementing measures that are both efficient and effective to retain and attract landlords.
Furthermore, he hinted at the extension of the Help to Buy scheme for another year. This initiative enables first-time buyers to reclaim up to €30,000 through tax reimbursements based on their previous payments.
“Good individual landlords, the mom and pop landlords, we want measures brought in to retain and attract. I’m not one to demonise that sector.”
Unfortunately, he refused to give details on what the new measures might be. He did however indicate that he would like to increase the rental tax credit by an additional 500€ per person, essentially doubling the allowance.
I would like to see that increase next year in the Budget,” A lot of renters out there are paying above and beyond what they can afford.”
Although the minister spoke passionately about the housing crisis, he was unwilling to comment on when the rate of homelessness might drop.
“During the final quarter of the previous year and the initial quarter of the current year, we facilitated the transition of a greater number of individuals out of emergency housing than in any preceding period,” he remarked.
“This underscores the utmost importance of securing a home for those who currently lack one.”
The news of this possible tax break being transitioned to all landlords is good news for the sector, Last year Ireland saw the highest recorded rate of landlord attrition. So any incentives, that attract landlords back is welcome news to both tenants and the remaining landlords.
KPM Property Management
For almost 25 years KPM Group has been delivering the highest standards in Property Management.
We act for private investors, lenders, as well as domestic and international funds. Sectors of expertise include Private Rental, build-to-rent projects, owner management companies, Local Government agencies and best-in-class Social Housing developments.
We are property management professionals for domestic and international fund investors, the financial services sector, Local Government agencies and the Owner Management Company sector, in which we started and where today we still continue to grow.Kpm Property Management Dublin
If you need more information on tax breaks or any aspect of the property market then contact us today.
