Frank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I thank Senator Boylan for raising this very important issue. It is timely to give an update on the Government's supports for landlords to retrofit their rental properties.

The climate action plan has set ambitious targets to retrofit the equivalent of 500,000 homes to a building energy rating of B2 and to install 400,000 heat pumps. In the residential rental sector, the so-called split-incentive issue can arise when incentives to invest in energy-efficiency upgrades are misaligned between landlords and tenants. My Department undertook a public consultation in late 2019 and early 2020 on the split-incentive issue, as it impacts on the objective to improve energy-efficiency standards in the rental sector. The findings from the consultation have informed the development of a number of new measures aimed at improving the energy efficiency of the rental sector. The Government's Housing for All Plan commits to the introduction of a minimum BER for private rental properties, where feasible, from 2025, and to develop a roadmap to implement these standards. The national home energy upgrade scheme and the community energy grant scheme, which are administered by the Sustainable Energy Authority of Ireland, SEAI, offer grants of up to 50% of the total cost of upgrades to B2 BER and are available to private landlords. Higher grant amounts are available to approved housing bodies. Private landlords can also avail of new increased rates of grant support to upgrade their rental properties on a step-by-step basis under the better energy homes scheme. As the Senator is aware, this includes 80% grants for attic and cavity wall insulation and a €700 grant for heating controls.

Just last week, my colleague, the Minister for Finance, announced a new tax incentive to encourage small-scale landlords to undertake retrofitting works. This measure will provide for a tax deduction of up to €10,000 per property, against case V rental income, for certain retrofitting expenses incurred by the landlord on rented residential properties, for a maximum of two rental properties. This new tax deduction is in addition to the SEAl's grants, and the combination of both measures offers substantial support to landlords to retrofit their rental properties. I have read out exactly what Senator Boylan said I would be reading out. I thank her for her indulgence. It is also intended that non-corporate landlords will be able to avail of the planned low-cost loan scheme for retrofitting when it is launched early next year. In addition, the climate action plan commits to upgrading 36,500 local authority-owned homes to B2 by 2030. An allocation of €87 million was provided for this programme in budget 2023. The new action plan to combat energy poverty will be published in the coming weeks. This action plan will set out the range of measures being implemented ahead of the coming winter, as well as key longer-term measures to ensure those least able to afford increased energy costs are supported and protected.

I agree with Senator Boylan's proposal. We are all trying to cut down on the use of tumble dryers. I hope renters and owner-occupiers will be allowed to dry their clothes on balconies. There must be some flexibility. I will bring the proposal back to the Minister because it makes sense. I was aware of some draconian measures, but in the current climate it would make great sense. The action plan to combat energy poverty might contain some detail in that regard. As Senator Boylan says, there may need to be a change in legislation.