371. Deputy Ken O'Flynn asked the Minister for Finance whether the Government has assessed the impact of rising LPT valuations on homeownership rates and private rental supply. [60908/25]

The Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025 was enacted in July. This provided for, inter alia, an increase of 20% in the valuation bands for LPT for the valuation period 2026-2030.

Earlier this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties. The purpose of this work was to inform policy decisions and to provide guidance to taxpayers on the valuation of their properties for the upcoming LPT valuation period 2026-2030. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf.

As outlined in the paper, an estimated 93% of properties nationwide will remain in the same valuation band following revaluation. Base LPT charges will increase by a small amount for properties which remain in their existing band, with properties valued at €525,000 or below expected to pay between €5 - €25 extra in LPT annually. For these reasons, the impact of LPT revaluation on homeownership rates and rental supply has not been assessed.

The Government continue to utilise multiple measures to increase the supply of owner-occupier and rental accommodation and support first-time buyers. The Help to Buy scheme and First Home Scheme help to bridge the affordability gap for first-time buyers. To date, almost 60,000 Help to Buy claims have been approved. There have been more than 8,400 approvals for the First Home scheme since its launch in July 2022.

The Uisce Éireann rebate and Development Levy Waiver schemes contributed to record commencement levels last year (69,060 notices). The Central Bank estimate that the schemes together could lower costs by up to €20,000 per unit.

Measures in Budget 2026 to improve viability include cutting VAT on apartment developments from 13.5 to 9 per cent. This could save around €20,000 in cost per unit for a typical 2 bed-apartment. An enhanced corporation tax deduction is being introduced for qualifying apartment construction costs, to contribute to addressing the viability gap. This deduction will provide a net benefit of up to €6,250 per apartment.

These measures will help to increase the supply of homes available for owner-occupiers and renters and will continue to support first-time buyers.