Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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25. To ask the Minister for Housing, Planning, and Local Government for an update on his engagement with the Department of Finance on the tax treatment of Land Development Agency cost rental activity; and if he will make a statement on the matter. [35636/25]

James Browne (Wexford, Fianna Fail)
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Cost Rental is a key element of the Housing For All strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households. Though it was introduced in 2021, cost rental delivery is accelerating, with over 3,600 homes already delivered by the end of 2024, and a substantial pipeline now in place.

My Department is providing significant funding to delivery partners for cost rental. As well as making delivery viable, this State funding drives down rents. All cost rental projects must achieve cost-covering rents that are at least 25% below comparable market levels.

The LDA has delivered over 1,500 cost rental homes by end-2024 and is building a strong pipeline of homes through direct development and through engagement with the private sector to deliver cost rental homes on sites with active planning permissions where the development has stalled.

As part of a wider Government decision on the role and remit of the Land Development Agency, the Government has accepted a number of recommendations to better leverage the Land Development Agency to accelerate the delivery of housing including working with the Department of Finance in the context of Budget 2026 on exempting designated cost rental activity from corporation tax. Engagement on this issue is ongoing between officials of my Department and the Department of Finance.