The Irish government is planning to introduce support measures for the rental sector ahead of Budget 2024, according to Tánaiste Micheál Martin. Speaking in Cork, Martin acknowledged the pressures faced by the rental market and stated that measures would be considered to retain and attract new participants while addressing increased costs for renters.
Martin’s comments come as Cork renters continue to experience significant rent increases. The Central Statistics Office’s (CSO) Census 2022 Profile 2 – Housing in Ireland report revealed that the average weekly rent paid to a private landlord in Cork in April 2022 was €252, representing a 40% increase since 2016. At a national level, the average weekly rent rose to €273, a 37% increase, exceeding the previous rate of growth between 2011 and 2016.
In response to these challenges, the government introduced the Rent Tax Credit in Budget 2023. While Martin acknowledged the relief as a positive measure, he noted that it was not as widely utilized as anticipated. He emphasized the need to focus on the rental market, which has experienced rent increases over the past decade.
As part of the government’s broader Housing for All plan to 2030, Martin expressed his awareness of the rental sector’s needs. The forthcoming budget will address ensuring stability, retaining individuals in the rental market, attracting new participants, and tackling rising costs. The number of rent pressure zones has been increased, but additional attention is required to alleviate pressures facing renters.
The government’s commitment to implementing support measures in the rental sector reflects the ongoing efforts to address housing challenges in Ireland. By unlocking residential development land and constructing 753 new homes in Ballyvolane, the government aims to increase housing supply and provide more options for renters and potential homeowners.
With a focus on balancing the interests of landlords and tenants, the government aims to foster a sustainable rental market that offers stability and affordability. Measures such as the Rent Tax Credit demonstrate an acknowledgment of the challenges faced by renters, and upcoming support measures will further address these issues.
As the government prepares for Budget 2024, it aims to strike the right balance between retaining individuals in the rental market and attracting new participants while addressing the increased costs faced by renters. With ongoing efforts to enhance housing supply and support measures tailored to the rental sector, the government aims to create a more equitable and sustainable housing landscape in Ireland.
