Written answers

Thursday, 9 March 2023

Department of Housing, Planning, and Local Government

Rental Sector

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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211. To ask the Minister for Housing, Planning, and Local Government if he will outline measures being taken to prevent landlords fleeing the rental market; and if he will make a statement on the matter. [11961/23]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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As set out in the Housing for All Action Plan Update (published in November, 2022), my Department has commenced a comprehensive review of the private rental sector. This review will take into account the significant regulatory changes over the past several years in the residential rental market, and will report on how our housing system can be enhanced to provide an efficient, affordable, viable, safe and secure framework for both landlords and tenants.

This review will include a thematic review of the principal and relevant elements of the rental market to ensure that Ireland has a sector which meets the needs of tenants, both short-term and long-term, while providing a supportive environment for the maintenance of the existing stock and provision of new units. The review conclusions will draw on international practice. The review is underway and will conclude as early as possible, with the benefit of public consultation and targeted engagement with various stakeholders. The Minister for Finance has indicated that he will give consideration to any review recommendations for necessary tax changes to help encourage investment in the residential rental sector. My Department will engage with the Departments of Finance; and Public Expenditure, NDP Delivery and Reform in carrying out the review and implementing relevant recommendations.

This review will be essential in properly planning future policy for the residential rented sector including implementing measures to support both landlords and tenants.

Budget 2023 provides for a doubling of the cap on deductibility for a landlord’s pre-letting expenditure for previously vacant properties to €10,000 per property. The requirement for vacancy for associated expenditure to qualify for such tax deductibility has been reduced from 12 to 6 months. The Government provided further assistance to landlords under the Finance Act 2022, via a Government Committee Stage amendment passed in Dáil Éireann on 23 November to provide a new tax deduction (of up to €10,000) for landlords who undertake retrofitting works while the tenant remains in situ.

The Government is committed to increasing housing supply generally, including rental accommodation, and to protect renters while retaining landlords in the system. Over the coming months, my Department and I will work with our partners in Government to put together a comprehensive new package of effective measures for both tenants and landlords.


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