Ireland has increased the maximum support available to first-time buyers under its Help to Buy scheme to €35,000 as part of a package of housing measures in its 2027 Budget.
The €5,000 increase forms part of a series of measures designed to address affordability and housing supply, with the country’s Rent-a-Room tax incentive also being expanded.
Homeowners will be able to receive up to €16,000 a year tax-free from letting accommodation in their main residence, up from €14,000.
The Rent Tax Credit is also increasing by €150 to €1,150 for an individual and €2,300 for jointly assessed couples.
FIRST-TIME BUYERS
Ireland’s Help to Buy scheme provides qualifying first-time buyers with a tax refund towards the purchase or self-build of a new home.
Barry Duffy, Chief Executive Officer at Duffy Property Group, says: “Measures announced today to help more people onto the housing ladder, including the increase to Help to Buy, are very welcome.
“They should give more first-time buyers the confidence and purchasing power to take that step. The priority now is to match that demand with supply.”
Marcus Ryan, Chief Executive Officer at residential property investor and developer Lioncor, says the increase could also support development viability.
He adds: “If we are serious about increasing supply, we need policies that give developers and investors confidence to commit capital and bring more schemes forward.”
RENTAL SUPPLY
The Rent-a-Room changes are intended to encourage additional accommodation into the rental market, with the relief also being extended to qualifying detached garden accommodation.
Meanwhile, the Budget cuts third-level student fees by €150.
Colm Lauder, Committee Member at the PBSA Council of Ireland and Founding Partner at Lauder Teacher, says accommodation remains a significantly greater financial challenge for many students.
He says Ireland needs around 42,000 additional student rooms over the coming decade, while more than 14,000 consented rooms remain unbuilt because of construction and financing costs.
Lauder is calling for VAT to be removed from construction costs on consented student accommodation schemes to help increase supply and reduce pressure on the wider rental market.
