The Taoiseach has said improving the tax treatment of landlords is a “good idea” but he would be reluctant to make major changes in advance of Budget 2023.
Leo Varadkar’s remarks come as the Government deliberates over whether or not to extend the temporary ban of evictions that was brought in for the winter months to help renters amid the cost-of-living crisis.
There are concerns that keeping the ban will encourage more landlords to leave the market, further reducing the number of homes available.
Several Fine Gael TDs and Senators expressed opposition to extending the eviction ban at a private meeting of the party on Wednesday evening, though some spoke in favour of extending it.
‘I wouldn’t like to be a young person. You get a job but you have nowhere to live’: Mixed odds on Government at Mullingar dog track
Election 2024 manifestos: the parties’ promises on housing, cost of living and health – and how they differ
Incumbent governments sometimes forget that elections are about the future
Sinn Féin denies planned ‘piggy bank heist’ as major parties clash over spending
Mr Varadkar, the Fine Gael leader, said of the meeting: “It’s fair to say that there was a diversity of views.
“It’s not a black and white decision to extend or not to extend... there are other things at play as well.”
Minister for Housing Darragh O’Brien is to bring proposals to Cabinet on the matter before the St Patrick’s Day Dáil recess.
Mr Varadkar said there has been “a demonisation of landlords” that “hasn’t been helpful”.
[ Eviction ban ‘creating new form of homelessness’, says VaradkarOpens in new window ]
“Lots of people need to rent for a lot of different reasons. For that reason, we need landlords,” Mr Varadkar said.
“I think it’s a good idea that we should improve the tax treatment of landlords, particularly small landlords to encourage them to stay [and] to encourage them to come into the market.”
He said that the National Economic and Social Council (NESC) has made suggestions around linking better rights for renters to tax measures for landlords.
“That makes sense to me,” Mr Varadkar said.
However, he added: “I would be reluctant to do any major tax measure out of context...
“Just anything meaningful will cost a significant amount of money and I think doing that outside of the budget context, would be unwise.”
He said the budget is “not all that far away” and “perhaps we can give that consideration in early course”.
[ ‘I’m a homeless homeowner’: The apartment owner who is now couch surfingOpens in new window ]
Mr Varadkar was speaking to reporters after turning the sod on a road project in Drogheda, Co Louth which is aimed at paving the way for housing in the area.
He was joined by Mr O’Brien who defended the Government’s record on housing delivery.
Mr O’Brien said figures will be published on Thursday afternoon showing a record number of home-building commencements for January.
“It is our objective this year to exceed the target, 290,00 for this year,” Mr Varadkar said. “I would like us to break 30,000 this year. I can’t guarantee that’s going to happen but we will do everything we can.”
