Matt Shanahan (Waterford, Independent)
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16. To ask the Minister for Finance his plans to combat the exodus of small and accidental landlords from the private rented sector; and if he will make a statement on the matter. [31034/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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In relation to the Deputy's question, overall policy responsibility for housing policy, including the rented residential sector, is a matter in the first instance for my colleague the Minister for Housing, Local Government and Heritage.   I am only in a position to respond in respect of taxation measures.

Also, as the Deputy will be aware, the Government's strategy to address the various policy challenges relating to housing is as set out in ‘Housing for All’. Under this strategy, my Department is committed to review the options presented in the Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers (2017).  A copy of the 2017 report is available at: www.gov.ie/en/collection/51d1c-budget-2018/. I understand that the review is in hand and, in keeping with the ‘Housing for All’ commitment, is expected to be completed by Q3 2022. 

Proposals for new tax incentive measures are assessed in accordance with my Department's Tax Expenditure Guidelines. These guidelines make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.

Ireland’s past experience with tax incentives in the property sector strongly suggests the need for a cautionary stance when considering State intervention.