Simon Harris (Wicklow, Fine Gael)

I thank Deputy Farrell. The Deputies are requesting a report on the rent tax credit operating in the absence of a cap on rents, and making a direct comparison between the amount of the credit and rent increases. They suggest that the rent tax credit should be complemented by rent caps. There are currently certain limits to rent increases. Rent increases in a rent pressure zone cannot now exceed general inflation. The ESRI published research in 2022 on the positive impact of rent pressure zones. This research found a clear downward trend in rental inflation following the introduction of the rent pressure zone legislation. We have now taken a decision as a Government to ensure that rent pressure zones cover the entire country. When the Government came to office people were wondering if we would continue rent pressure zones but not only did we continue them, we have extended them to the entire country. That benefits counties including Deputy Doherty's that were not previously covered by rent pressure zones.

The CSO consumer price index shows that private rents increased by 3.2% on an annual basis in October 2025. This is the tenth month in a row in which the rate of rent inflation has either decreased or remained stable. I know that rents are extraordinarily high for people, but it is now the tenth month in a row in which the rate of rent inflation has either decreased or remained stable. Other steps are also being taken to enhance the security of tenants. They include the introduction of tenancies of minimum duration and further restrictions on no-fault evictions. As Deputies will be aware, we have introduced new comprehensive rental reforms, which will take effect from next March for new tenancies.

More broadly, the Government recently published the delivering homes, building communities action plan. Additional supply over time will help to moderate the housing costs in both the purchase and rental sectors. That is why the focus has to continually be on supply. This year, the Government has allocated €6.8 billion to capital expenditure on housing delivery, a more than sixfold increase in just a decade. This will help to moderate the housing costs in both the purchase and rental sectors as additional supply comes on stream. To date, more than 4,500 new cost-rental homes have been delivered since the launch of this tenure through various different channels, including local authority delivery, approved housing body delivery, LDA delivery and through 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 the rent tax credit is valued at a maximum of €1,000 per single individual and €2,000 per jointly assessed couple. The Finance Bill extends the relief for a further three years. We should remember that the relief was due to end but we are now deciding to extend it in this legislation before the House for a further three years. In 2023, which is the latest year for which data are available, 315,000 taxpayer units benefited from the credit. That equates to almost 400,000 individuals benefiting. The extension of the credit in the Bill before the House tonight represents a commitment of approximately €350 million per annum in terms of support for renters.

The programme for Government commits to "progressively increase the rent tax credit". That remains a commitment in the programme for Government. The priority this year was to extend the credit for a further three years. I intend to consider further increases to the value of the credit as part of each forthcoming annual budget and finance Bill.

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