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Dáil
‹ An tOrd Gnó - Order of Business

Tax relief for renters

Summary

Deputy Mary Lou McDonald asks whether the Taoiseach will support tax relief for renters, citing record rents and breaches of rent pressure zone limits. The Taoiseach replies that the Finance Bill already gives tax breaks to all workers and argues that targeting renters alone would ignore other struggling groups, while she presses him to answer specifically on renters.

The Finance Bill is currently making its way through the Dáil and is due back in the House next week for Report Stage. In the aftermath of the budget, the leader of Fianna Fáil said he would seek additional tax breaks for landlords in the Bill. We never got to the bottom of what precisely those would be. However, I want to know whether the Taoiseach will provide a tax break for renters.

Yesterday's quarterly rental report from daft.ie shows rent has risen to an all-time high of €1,334 per month. In every single county in the State, the 4% rent pressure zone, RPZ, cap is being breached. In Galway city, a RPZ, average rent is 16% higher than in the same period last year. That is four times the 4% cap. Eighteen counties in addition to Galway show double-digit increases, including 20% increases in Limerick and Waterford cities. It is, therefore, time for the Taoiseach to accept that his approach to tackling spiralling rent increases has categorically failed. What we need if we are to tackle this crisis are an immediate three-year rent freeze and tax relief for tenants. Sinn Féin will reintroduce its amendments to the Finance Bill next week to provide such tax relief. The Government will then have the opportunity to do the right thing to help struggling renters, or it can do the wrong thing again alongside its partner, Fianna Fáil, and persist with introducing tax breaks for landlords instead. When this choice is made, we will then see whether the Taoiseach is on the side of renters or landlords. The choice is, of course, his. I would like to know whether he will support our amendments.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

The Finance Bill proposes tax breaks for all workers - 1.5 million of them - as did the previous Finance Bill and the one before it.

Comment on this

Not the low paid.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

For the average household, that has resulted in a reduced universal social charge and reduced income tax of approximately €1,500 per year. That is the equivalent of a monthly rent or mortgage payment for most individuals in our society.

Comment on this

Not if one is on low pay.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

Deputy Mary Lou McDonald's proposal is to give a tax break only to renters. She proposes to do nothing for people struggling with mortgages or people who are living with their parents and struggling to raise money for a deposit. She proposes nothing for people who perhaps own a home already but who are struggling with other bills, such as bills for childcare. That is the difference. The Deputy wants only to single out individual groups in society and appeal to them.

Comment on this

The difference is that I have asked about renters so it could be useful to respond on renters.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

We want to do it for everyone.

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