Government ‘acutely aware’ of pressures on rental sector, says Tánaiste

TÁNAISTE Micheál Martin has said the Government is “acutely aware” of the pressures on the rental sector and that support measures will be considered ahead of Budget 2024.

Mr Martin made the comments during a speech in Cork on Friday before he turned the sod on a €9m infrastructure project in Ballyvolane, which will unlock residential development land for the construction of 753 new homes.

The new homes will be built across six new neighbourhoods and the infrastructure work is being delivered by the Housing Infrastructure Services Company (HISCo) - a commercial joint venture between the Ireland Strategic Investment Fund (ISIF) and Cork County Council to build supporting infrastructure for housing.

The Fianna Fáil leader, in his speech, addressed progress in terms of housing supply under Housing for All, the government's housing plan to 2030.

Mr Martin said he was “conscious” that the rental market also needs supports.

“In the forthcoming budget we will be looking at that both in terms of ensuring that the tipping point can be arrived at where we both retain people in the rental market and encourage new people to come into the rental market, and we’re conscious also of the pressures on renters in terms of increased costs,” he said.

Rent Increase

The recently published Central Statistics Office’s (CSO) Census 2022 Profile 2 – Housing in Ireland report showed that renters in Cork have continued to face large increases in the amount of rent they pay since 2016.

The latest data shows the average weekly rent paid to a private landlord in Cork in April 2022 was €252, which was a 40% increase on 2016.

The average weekly rent paid to a private landlord at a national level rose to €273, up €73 (37%).

This was more than double the rate of increase (17%) between 2011 and 2016.

Speaking to reporters at the event, Mr Martin said that he believed the Rent Tax Credit announced in Budget 2023 was a welcome initiative.

“We were conscious last year of the pressure on renters, and we brought in the tax relief and, in fact, not as many availed as we may have thought in terms of the estimates that were taken, but I think it was a welcome tax relief,” he said.

“Rents have been increasing over 10 years.

“We’ve increased the number of rent pressure zones, but there are pressures on renters and on the rental market more generally and we have to give focus to that sector of the overall housing market,” he added.

Rent Tax Credit is available for the tax years 2022 to 2025.