Minister declines to say if budget will boost tax credit for renters

James Browne also defended the Government’s changing of apartment design guidelines, saying it is currently unviable for developers to build apartment complexes. Photo: Leah Farrell / © RollingNews.ie

The minister for  housing has declined to say if he will press for further increases to the rent tax credit in the upcoming budget.

James Browne said the tax credit has been a huge support for renters and the Government is aware of its importance. Renters are currently able to claim a €1,000 rent tax credit, after the tax relief was increased by €250 in Budget 2025.

The tax credit has been repeatedly increased since it was first introduced in Budget 2023, with the Coalition committing to raising it further within the programme for government.

“We’re conscious that rents are, unfortunately, continuing to increase,” Mr Browne said.

However, he would not say if he intended to lobby the minister for f inance Paschal Donohoe for another hike in the tax credit.

“In terms of the budget, as we do every year, we’ll enter into negotiations with minister Donohoe across Government. A lot of tough decisions have to be made. 

We’re in very uncertain times and I’ll leave any discussion for the rent tax credit to the budget.

“We are in a slightly different situation at the moment. We’re in very uncertain times. I think the budgetary situation is far more uncertain than it was in the past,” the minister said.

However, Mr Browne said the Government is committed to assisting renters, citing the increases in rent tax credits in recent years as well as recent reforms to the wider rental sector.

“They are in a very difficult situation, I’m very conscious of that and certainly I’ll be working towards everything we can do to help.”

Asked if this was a signal from the Government that it may not be able to increase the tax credit this year, Mr Browne said it was not.

“I think in fairness to budget time, a lot of decisions have to be made and I will always leave those kinds of decisions to actual budget negotiations.”

Apartment guidelines

Meanwhile, Mr Browne defended the Government’s changing of apartment design guidelines, saying it is currently unviable for developers to build apartment complexes.

As part of these changes, there will be reductions in the minimum size for apartments and removing the requirement for cultural spaces to be built within developments.

However, sources in the Department of Housing have stressed there will be no changes to requirements for private communal spaces within apartment blocks.

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“The problem we have at the moment is we have really high specification for apartments that are not leaving the design table,” Mr Browne said. “The best designed apartments that never leave the design table are no good to the people that are stuck in box rooms in their parents' houses.”

The minister said there is an affordability issue for apartment renters and buyers, but equally there is a viability question for developers. “They are saying that if they build them at the current cost it would take to do so, nobody would be able to purchase them,” he added.