Minister for Housing Darragh O’Brien has said he wants the rent tax credit to be “increased and expanded” in the upcoming budget.
The current maximum value of the credit is €1,000 per year for jointly-assessed married couples or civil partners and 500 euro in all other cases, including single people.
Speaking to reporters in Dublin, Mr O’Brien said he there was “still significant work to be done” for renters.
“I am acutely aware, particularly for those who are renting – people paying rents way above the odds – and you know, that’s why we brought in the renters’ tax credit, for argument’s sake, in the budget last year.
“I want to see that increased and expanded in this year’s budget. That’s a real measure to help with a reduction in rental costs.”
However, he would not put a figure on how much of an increase he would like to see on the tax credit which has been claimed by approximately 230,000 renters.
He continued: “But fundamentally, there’s been a continued problem in the private rental sector, and we need to get more supply there. We need more social homes.”
Mr O’Brien, who set out an ambition to “redouble efforts”, said that change is happening for young people who want to buy a home.
It comes after figures released by Eurostat, the EU’s statistics body, indicated that around two thirds of adults aged 25-29 are living with their parents, which compares with the European average of 42 per cent.
“Things are far from perfect, I’m not disputing that for a moment.
“Young people who’ve gone to college who are out there working now and aspire to be able to own their own home, we want to continue to support them – so people can see those changes happening.”
Speaking to reporters at the launch of approved housing body Respond’s annual report, he said Government had “turned a corner” after 12 years of under-supply of homes.
He said the Government is projecting that more than 30,000 new homes will be built this year.
Mr O’Brien also said there will be “efficient and effective measures for individual good landlords” in the Budget.
“What I want to ensure is that we have a stable and secure private rental market and there will be measures in this process for individual landlords.”
