Government will be offering tax incentives to small landlords to remain in the rental market, according to Minister for Finance Michael McGrath, who said the exact details of the plan have not yet been finalised.
Speaking in Cork on Monday, where he was attending a regional meeting of employers’ group Ibec, Mr McGrath said he was keen to bring stability to the rental sector as too many landlords have been exiting, reducing the number of properties available.
“We have seen too many landlords exit the market. It’s not always because of tax reasons, but tax can be a factor in some cases,” he said, adding that rising interest rates and some property owners coming out of negative equity and deciding to exit the market were also factors.
The Minister acknowledged that some landlords have sold up due to unhappiness with regulation in the sector and the approach taken by the Residential Tenancies Board, but he stressed that the State has to ensure there is proper oversight of the market and that good housing standards are maintained.
He said the Government’s first priority was to retain existing investment in the rental sector, and then to make it more attractive for new investment to come in given “a steady, long-term supply of rental accommodation” is needed.
“And what I have underlined in my public comments is the need for any additional support that we provide to the rental sector to be linked to security of tenure and to a commitment by landlords to remaining in the markets and that for me is the key issue,” he added.
Mr McGrath confirmed the details of a report in the Business Post which said Minister for Housing Darragh O’Brien was continuing to push for a tax break for small landlords as well as “a backstop” incentive for developers to keep