The Government focused key measures in Budget 2026 on increasing the supply of newly-built homes to address the housing crisis.
The measures aim to incentivise builders, investors and land owners to build more badly needed homes, as well as the infrastructure needed to support this.
Directing State finances to the building of homes meant there wasn’t much new in the budget for renters, landlords and would-be homeowners.
What are renters getting?
The Renters’ Tax Credit has been extended for three years at its current level of €1,000 for an individual or €2,000 for a couple. There had been a commitment in the Programme for Government to increase the tax credit, but it hasn’t materialised in this budget.
RM Block
What’s in the budget for landlords?
The income tax deduction for small landlords who retrofit their properties will be extended for a further three years. Under this scheme, landlords can claim up to €10,000 tax relief per property retrofitted. The number of properties landlords can claim the relief on is being increased from two to three.
What’s in the budget for prospective homeowners?
There have been no major changes to any of the affordability measures currently available to help would-be first-time buyers. The Help to Buy scheme, where first-time buyers of newly-built homes under €500,000 can secure tax relief of up to €30,000, will be extended. This measure is part of the starter-homes programme, which also includes the First Home Scheme, Vacant Property Refurbishment Grant, Affordable Purchase Scheme and Cost Rental Scheme.
The starter-homes programme has been allocated a budget of €1.2 billion, with a target of delivering 15,000 new homes in 2026.
What about those who already own their home?
Mortgage interest tax relief has been extended for another two years, but it will be reduced for the final year. People will be able to claim the existing level of €1,250 for 2025 and €625 for 2026.
What about those on social housing waiting lists or housing supports?
Some €2.9 billion has been allocated to deliver 10,200 new-build social homes and second-hand acquisitions by local authorities. The tenant-in-situ scheme – where a person can continue renting their home if a landlord sells the rental property – falls under this budget, though the amount of money that scheme will receive is not defined.
Is there anything to help with cost-of-living pressures on homeowners and renters?
There has been no repeat of one-off measures to support households this year, though the 9 per cent rate of VAT on gas and electricity bills will be extended until December 31st, 2030.
What are developers getting?
By far the biggest winners in Budget 2026 are the developers of newly-built apartments, as the Government seeks to address the housing crisis by encouraging builders to build and investors to invest.
The main measure on this front is the reduction of VAT on the sale of new apartments, which drops from 13.5 per cent to 9 per cent.
“This reduction will help address the viability gap in apartment construction as part of a social policy to deliver more and higher-density apartments,” Minister for Finance Paschal Donohoe said.
There will be exemptions or reductions in corporation tax on profits from the sale of some apartments, as well as the rental profits in Cost Rental schemes.
