Landlords could be offered budget tax breaks when granting long-term leases to tenants

Renters are in line for a first such tax credit on their monthly rent under measures being considered for the budget later this month.

And despite recent controversy over the number of landlords in the Dáil, there could also be new incentives for property owners to agree to long-term leases.

That Irish Independent expects Housing Secretary Darragh O’Brien to advocate a special tax break for rent payments. It would be the first time renters in Ireland would be able to access such a credit base d on how much they pay each month.

The package in preparation could also include additional tax breaks for individuals te landlords are subject to strict conditions.

One of these is that they are expected to commit to renting out their property long-term, meaning a tenant has a fixed tenure.

Compared to other EU countries, there is very little domestic property available on five or ten year leases in Ireland.

The government recently faced a backlash over its handling of the controversy over properties rented by former junior minister Robert Troy.

Any move to support landlords in the 2023 budget is seen as politically sensitive. But by tying new incentives to property security, the government will argue that tenants will ultimately see the greatest benefit.

A new report by housing association Threshold has revealed that one in three tenants now spends at least half of their net income on rent.

Last month there were fewer than 1,000 rental properties available nationwide on the daft.ie website. Her research revealed that the average asking price across the country was €1,618.

Mr O’Brien yesterday said he was “very aware of the pressures tenants are facing”.

“Certainly we will look for opportunities in this area where we can help in some way,” he said.

The focus remained on increasing the supply of affordable and social housing and there will be a “significant delivery” of 24,600 new homes this year to meet a Housing for All target of 33,000 a year, he said.

“But there will be other measures which I will certainly discuss and that will be a matter for the budget at the end of this month,” he added.

It comes as DCU warned its students may have to reschedule their college places if they can’t find housing.

In an email seen by the Irish Independentthe university has called on its alumni to take advantage of the rental housing program to alleviate the housing shortage.

https://www.independent.ie/irish-news/education/landlords-could-be-offered-budget-tax-breaks-if-they-give-long-leases-to-tenants-41967511.html Landlords could be offered budget tax breaks when granting long-term leases to tenants

Fry Electronics Team

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