Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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370. To ask the Minister for Finance the projected revenue from LPT in 2026, and the estimated number of households reclassified into higher valuation bands since 2021. [60907/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Local property tax (LPT) is a self-assessed tax charged on the market value of residential properties in the State, which is collected by Revenue. The number of homes which move into a higher band will be determined by the self-assessed returns by homeowners. Therefore, it is not possible to provide a definitive answer to the Deputy’s question.

Earlier this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties. The purpose of this work was to inform policy decisions and to provide guidance to taxpayers on the valuation of their properties for the upcoming LPT valuation period 2026-2030. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf.

As outlined in the paper, the estimated LPT yield based on the 2026-2030 bands and rates is €611 million if no rate adjustments were applied by local authorities. This estimate was developed using data from the 2025 LPT register, the Central Statistics Office Residential Property Price Index, and Revenue Stamp Duty data, as explained on page 8 of the paper.

It is estimated that approximately 93% of properties nationwide will remain in the same valuation band following revaluation. 4% of properties are estimated to move up one valuation band, while 1% are estimated to move down a band. Rounding effects these totals. This analysis does not include properties owned by local authorities or Approved Housing Bodies, as these properties will automatically remain in Band 1.

Regarding the estimated number of households reclassified into higher valuation bands since 2021, Revenue published analysis of LPT returns filed after the 2021 revaluation. Revenue found that 13% of properties nationwide moved into a higher valuation band after the 2021 revaluation. It should be noted that this was the first revaluation since LPT was introduced, in 2013. These statistics are also available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/lpt/lpt-stats-update-050123.pdf.

Following an analysis of the LPT returns filed this month, data will subsequently become available on properties’ LPT liability and band movement.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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371. To ask the Minister for Finance whether the Government has assessed the impact of rising LPT valuations on homeownership rates and private rental supply. [60908/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025 was enacted in July. This provided for, inter alia, an increase of 20% in the valuation bands for LPT for the valuation period 2026-2030.

Earlier this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties. The purpose of this work was to inform policy decisions and to provide guidance to taxpayers on the valuation of their properties for the upcoming LPT valuation period 2026-2030. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf.

As outlined in the paper, an estimated 93% of properties nationwide will remain in the same valuation band following revaluation. Base LPT charges will increase by a small amount for properties which remain in their existing band, with properties valued at €525,000 or below expected to pay between €5 - €25 extra in LPT annually. For these reasons, the impact of LPT revaluation on homeownership rates and rental supply has not been assessed.

The Government continue to utilise multiple measures to increase the supply of owner-occupier and rental accommodation and support first-time buyers. The Help to Buy scheme and First Home Scheme help to bridge the affordability gap for first-time buyers. To date, almost 60,000 Help to Buy claims have been approved. There have been more than 8,400 approvals for the First Home scheme since its launch in July 2022.

The Uisce Éireann rebate and Development Levy Waiver schemes contributed to record commencement levels last year (69,060 notices). The Central Bank estimate that the schemes together could lower costs by up to €20,000 per unit.

Measures in Budget 2026 to improve viability include cutting VAT on apartment developments from 13.5 to 9 per cent. This could save around €20,000 in cost per unit for a typical 2 bed-apartment. An enhanced corporation tax deduction is being introduced for qualifying apartment construction costs, to contribute to addressing the viability gap. This deduction will provide a net benefit of up to €6,250 per apartment.

These measures will help to increase the supply of homes available for owner-occupiers and renters and will continue to support first-time buyers.