Tánaiste Leo Varadkar advocates tax cuts for household landlords to encourage them to stay in the rental market.
We spoke as new figures from Daft.ie showed record rental costs amid an unprecedented shortage of properties.
Figures from the Rental Tenancies Board have also shown that landlords are choosing to monetize their properties through sales, further reducing the number of homes available for rent.
“Having some tax changes in the budget to encourage landlords to stay in the market and not just sell, I think that would be a good idea. A lot of people are losing their homes because landlords are selling,” Mr Varadkar said.
“But if we do something for landlords in the household, I think we also have to do something for tenants.”
Real estate experts have previously said strict rent controls could squeeze small landlords out of the market.
Currently, landlords have to pay taxes of up to 52 percent on the rents they receive from their properties.
Mr Varadkar said the government needs to think about the rate at which landlords are selling.
“Another thing we need to look at over the next few months, either on budget or beyond, is what we can do to slow down the rate at which landlords are exiting the sector.
“I know it might not be popular to say but the truth is more and more landlords are just selling and have decided it’s easier to sell their property than to sublet it and we just have to.” think about it and see what we can do to make things better.”
He was speaking at the launch of Irish drone company Manna’s drone delivery service in Balbriggan, North Dublin.
Mr Varadkar said there will be “very significant” income tax and USC cuts for domestic workers.
He said an income tax rate of 30 percent is being considered, which would benefit about a million people.
“It will include a comprehensive income tax package that will reduce income taxes for low-income workers, for middle-income workers and for high-income workers. In particular, the focus is on middle-income workers,” said Mr Varadkar.
“It is agreed that we will see a very large income tax cut package in the budget that will benefit almost all workers.”
Mr Varadkar said the average person now pays €800 less in tax a year than eight years ago.
https://www.independent.ie/irish-news/politics/leo-varadkar-says-he-supports-tax-cuts-for-landlords-to-stop-them-fleeing-rental-market-41902952.html Leo Varadkar says he supports tax cuts for landlords to discourage them from fleeing the rental market