Paschal Donohoe (Dublin Central, Fine Gael)

That is fine. On the rent tax credits, first, Deputies Doherty and Farrell are requesting a report on the rent tax credit operating in the absence of a cap on rents, making a direct comparison between the amount of the credit and rent increases. They are therefore suggesting, as has just been done, that the rent tax credit should be complemented by rent caps. However, there are currently certain limits to rent increases. Rent increases in a rent pressure zone cannot exceed general inflation. While there is not a freeze in place, the rent pressure zones are in operation. The ESRI published research on this. Rent pressure zones now cover the entire country. The consumer price index identifies that the standardised average rent for new private tenancies increased by 5.9% in 2022, 9.2% in 2023 and 6.2% in 2024.

More broadly, the Government is placing its main focus on delivering on the Housing for All strategy. The aim in doing so is that additional supply over time will help to moderate housing costs for those who want to rent and those who want to buy.

Additional measures are being brought forward with regard to housing supply. This year, the Government has allocated €6.8 billion in capital expenditure for housing delivery. This represents a sixfold increase in just a decade. More than 4,500 cost-rental homes have been delivered since the launch of this tenure through various different channels including local authorities, AHBs, the LDA and the cost-rental tenant in situ scheme.

In relation to increases in the credit, for the years 2022 and 2023, the rent tax credit was valued at a maximum of €500 per single individual and €1,000 per jointly assessed couple. For the years 2024 and 2025, it was doubled to €1,000 per single individual and €2,000 per jointly assessed couple. It has now been extended for a further three years, benefiting - and they need this benefit - 315,000 taxpayer units, equating to almost 400,000 individuals. The programme for Government contains a commitment to "progressively increase the Rent Tax Credit". However, due to the many different demands that were there in relation to the budget, while this is something I hope and believe will be done in future budgets, as I said, due to the size of the overall budget and the other issues on which I had to make progress, I did not bring it forward at this particular time.

For the reasons I have outlined, I do not believe that the reports suggested by the Deputies are needed. As a result, I do not accept the amendments.

On the other proposals, first, on the measure that applies to landlords, we anticipate the overall cost for 2025 will be approximately €111 million. That is the best figure we have available to us. The rent tax credit in place at the moment involves an overall cost for this year of €350 million, so it is significantly higher in cost than the measure which has been brought forward with regard to landlords. The only reason measures are being brought forward in respect of landlords and - we will debate this later - to support developers is to increase supply and ensure that more apartments in particular will be built. The purpose is to try to keep landlords within the sector, because it remains the case that it will not be possible to make progress on the affordability and cost-of-living issues for tenants in particular in the absence of measures which stabilise and increase supply in the years ahead. That is the sole reason why measures are there with regard to landlords and supporting the private sector. I reiterate that if you look at the measure that is being funded and extended for renters, you can see that it is considerably in excess of the landlord-related measure.