Budget 2023: New vacant homes tax, €500 yearly tax credit for renters

Budget 2023: €6.2 billion has been made available to the Department of Housing under Budget 2023. 
Budget 2023: New vacant homes tax, €500 yearly tax credit for renters

Fiachra Gallagher

Main take-aways
  • Vacant home tax will apply to properties occupied for less than 30 days in a 12-month period
  • Help to Buy scheme extended at current rates
  • €500 yearly tax credit for renters
  • €6.2 billion allocation to the Department of Housing

Minister for Finance Paschal Donohoe said housing was "the central challenge" facing the country in the years ahead during the announcement of Budget 2023 on Tuesday.

Mr Donohoe announced a new Vacant Home Tax: residential properties that are occupied for less than 30 days in a 12-month period will be liable.

The tax will be charged at a rate equal to three times the property’s existing basic Local Property Tax rate.

Renters will receive €500 per year with the introduction of a new tax credit. It will be possible to claim the credit this year.

€6.2 billion has been made available to the Department of Housing under Budget 2023.

€1.7 billion of the allocation will be spent in 2023 to deliver social housing new-build target of 9,100 homes.

5,500 new affordable homes for sale and rent and 6,500 new social homes will also be supported.

Funding will be made available to support 8,800 new Housing Assistance Payment (HAP) tenancies, as well as 800 Rental Accommodation Scheme (RAS) tenancies.

€215 million will be provided to homelessness services, while €87 million will be spent on the retrofitting of social housing.

The Help-to-Buy scheme will continue at its current rate until the end of 2024.

Expenses accrued by landlords prior to letting properties can now be claimed for any amount up to €10,000.

Mr McGrath said that the Government has seen "significant progress" in the housing market after a decade of undersupply.

"It is clear, however, that more needs to be done," he added. "For many, rents are too high and the hope of owning their own home seems out of reach."

Donal McManus, Chief Executive of the Irish Council for Social Housing, welcomed the announced investment in social housing projects.

"The ICSH welcomes that the 10-year social and affordable housing programme is protected. The €2.6 billion capital commitment will deliver 9,300 primarily new build social homes in 2023 as well as a current funding commitment of €1.4 million billion, which will contribute to the delivery of 2,530 homes through schemes such as Mortgage to Rent and Repair and Lease," he said.

 

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