Renovation scheme to extend to landlords

The Home Renovation Incentive scheme is to be extended to landlords in order to improve the quality of rented housing stock, said Finance Minister Michael Noonan.

The HRI gives tax relief on the Vat portion (13.5%) of a bill for repair, renovation or improvement works carried out by an authorised contractor and has been seen to boost the building trade. The incentive has been taken up by 9,300 people, who have used 3,000 contractors for works totalling €190m.

Mr Noonan said extending the scheme to landlords would also impact on reducing rents.

“The incentive is generating employment in the tax compliant construction sector and increasing sales in building supplies, hardware and related businesses,” he said.

“To support legitimate operators in the rental and construction sector and help upgrade the quality of private rental stock, particularly at the lower end, I am extending the Home Renovation Incentive to rental properties whose owners are liable to income tax.

“This means that this very successful scheme will now be available to landlords for work carried out from budget night until the end of 2015. This will allow work to be carried out in a cost-effective manner and I would expect that the savings realised under this scheme will be reflected in rent levels.”