Paul Gavan (Sinn Fein) | Oireachtas source

I move recommendation No. 6:

In page 20, between lines 28 and 29, to insert the following: “Report on income tax relief

16.The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on an income tax relief equivalent in value to 8.3 per cent of annual rent to all private rental tenants not already in receipt of any State subsidy, examining the social and economic impact of this measure in the context of high levels of rent and other policy levers such as a ban on rent increases.”.

The latest rental report from Daft.ieshows that rents are continuing to rise across the State, with renters in Munster, Connacht and Ulster facing hikes of between 15% and 18% annually. The average monthly asking rent for the third quarter of 2021 was €1,516. The Government introduced legislation that pegged rents to inflation and allowed landlords to increase rents by 5.1%. Following that, it introduced legislation that would allow landlords to increase already unaffordable rents by another 2%, which is madness. These rent rises are the first data set reflective of the changes made to the rent pressure zone legislation that linked rents to inflation.

The report shows that 17 counties had double-digit rent inflation. Rents continue to soar outside of the Dublin area, increasing by over 20% in counties Mayo, Leitrim and Roscommon. This is a huge expense for households to shoulder.

The rental crisis continues unabated showing that tweaks to the failing rent pressure zone legislation have failed. Sinn Féin wants to see the introduction of a time-bound, refundable tax credit for renters in the private sector at a rate of 8.3% of annual rent and equivalent to one month's rent, in conjunction with a three-year ban on rent increases. This will provide much-needed relief for renters, effectively reducing the burden they face.

In 2009, the Commission on Taxation recommended discontinuing income tax relief for rent paid but on the grounds that the relief would increase demand and, therefore, rents to the benefit of landlords. However, this problem would not arise as we are proposing a refundable tax credit for rent paid would be accompanied by a ban on rent increases for the period in which the relief was payable.

The fundamental point is that this budget did absolutely nothing for renters. People are pushed to the pin of their collars with extortionate rents. In my village of Castleconnell, rents of €1,400 a month are being charged for very poor quality houses. The belief that it is okay to slow down the rate of increase is missing the point. We need rent reductions and a rent freeze. That is the only way to address the rental crisis in the country.