Budget 2023 – Housing

Budget 2023 – West Cork auctioneer welcomes the extension of the Help to Buy Incentive Scheme and reintroduction of the Rent Tax Credit 

Reacting to the measures announced in Budget 2023 Majella Galvin, of DNG Galvin, welcomed the extension of the Help To Buy (HTB) Scheme in its current format, for a further two years until 31^st December 2024. In addition, DNG Galvin welcomed the move to reintroduce the rent tax credit of €500 per annum, to those not in receipt of other housing supports, to help ease the cost of rental accommodation, with married couples or civil partners qualifying for a credit of €1000 per annum. 

Commenting on the announcements, contained within the Minister’s Budget speech this afternoon, she said “In respect of the Help To Buy Incentive Scheme, we very much welcome the announcement that the enhanced relief has been extended until the end of 2024, given the importance of the initiative in the current market, as the extension provides certainty to those first time buyers currently looking for a new home. The reintroduced rent tax credit is also to be welcomed and will be of some assistance to renters struggling with high rents in the current market.” Noting that “the flat rate credit will go much further outside the main urban areas where rent levels are lower.” 

Majella was also critical that the budget did nothing to encourage small to medium-sized landlords to stay in the market.  She continued, “however, by not committing to review the current punitive taxation regime faced by small to medium-sized landlords in the market in this budget, the government has missed a golden opportunity to stem their exodus from the rental sector.” She added “the failure to reduce the tax burden for landlords will mean many more will choose to exit the rental sector in the months ahead, further reducing the amount of available stock with rent caps in place that are available to rent. In turn, tenants will increasingly have to look at renting in the PRS sector which are traditionally brand-new properties where tenants will pay full market rents, and this will potentially be much more expensive for them.”

Given her reaction of the Budget 2023 Caroline Galvin of DNG Galvin said “The move to extend the Help To Buy scheme for a further two years is a sensible decision given the affordability issues that persist for first time buyers in the market at the present time, and with signs that new housing output is recovering strongly post- covid, it is welcome news for those first time buyers about to begin their property journey. She added “The decision to extend the scheme for two years as opposed to one is also welcome and will provide developers with a degree of certainty over future demand for their product, which in turn will promote the continued expansion of new housing delivery.” 

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