Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Many Deputies are looking for background and general information, so I will give them that first and then I will try to answer some of the specific questions that were raised. At present it is estimated that approximately 87,500 households are in receipt of social housing supports. This is made up of the following: 62,900 are in receipt of rent supplement; 20,000 are in the rental accommodation scheme, RAS; and 4,600 are in receipt of the housing assistance payment. It is estimated that approximately 70% of landlords have debt outstanding on their properties and may therefore be in a position to benefit from increased interest deductability. However, some landlords with outstanding debt would also have losses to carry forward. In these cases, there would be a reduced incentive to avail of the scheme.

At present, according to the PRTB figures, there are 170,000 registered landlords and 320,000 registered tenancies. Revenue has estimated that a full restoration of the 100% interest deductability for all residential tenancies, both private and social housing, would have an Exchequer cost in the region of €80 million per year. I think I inadvertently said €180 million earlier, so I would like to correct that. As this scheme will be demand-led, it is difficult to estimate the potential cost. However, it is tentatively estimated that should 10% of all landlords avail of this scheme, the potential cost would be approximately €8 million per annum. As the incentive operates on a three-year arrears basis, the first costs would be due to be borne by the Exchequer in 2019 for tenancies in the period 2016 to 2018. The potential cost in 2019 in respect of a three-year look-back is, therefore, tentatively estimated to be in the region of €24 million, but of course it will depend on what the take-up is. I think it was Deputy Doherty who looked for a further assessment. I am informed by my officials that an ex anteeconomic assessment of the measures using the tax expenditure guidelines is being finalised currently. A comprehensive assessment of the proposal has already indicated that the benefit would outweigh the cost. I can publish or provide Deputy Doherty with this when it is completed.

Deputy Boyd Barrett talked about multi-millionaires and those with massive investments benefitting from this. The trigger for this measure is that the tenant must be in receipt of rent supplement or one of the other types of assistance for social tenants. It is not about multi-million investments. Landlords can claim the interest tenancy by tenancy. REITs-----

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