Threshold says renters should have 10-year security of tenure

John-Mark McCafferty queries mooted tax break for landlords — and said there should also be a decade-long ban on evictions

Threshold CEO John-Mark McCafferty said of a landlords' tax break: '[T]here’s no guarantee that that measure would retain those who are planning to leave.' File picture: Jason Clarke

A national housing charity said it would be advocating for a minimum of 10 years of security of rental tenure if tax breaks are to be introduced for landlords.

Taoiseach Leo Varadkar said he thinks it is a good idea to improve the tax treatment of landlords to encourage them to stay in the market.

Mr Varadkar said he thinks there has been a “demonisation” of landlords which has not been helpful.

Threshold said that any changes to treatment for landlords would have to result in better security for renters.

Threshold chief executive John-Mark McCafferty said it would be advocating for a minimum of 10 years of security of tenure for renters if the government introduces a tax break for landlords. He said: 

We don’t believe in a blanket reduction of tax on rental income. 

"We don’t think that would necessarily be very effective in keeping landlords in the sector because there’s no guarantee that that measure would retain those who are planning to leave."

Mr Varadkar said he would be reluctant to introduce a major tax measure outside of the context of a budget but indicated this will be reviewed as part of budget discussions. 

It follows a recommendation from the National Economic and Social Council (NESC) which said tax breaks or fairer treatment for landlords should be considered to encourage them to stay in the system but only on the basis that tenants got stronger protection.

Focus Ireland and Chartered Accountants Ireland urged the same on Thursday.

“There has been a demonisation of landlords, in particular in Ireland, that hasn’t been helpful,” said Mr Varadkar. “And I think it’s a good idea that we should improve the tax treatment of landlords, particularly small landlords, to encourage them to stay, to encourage them to come into the market.

“And I think what NESC proposed made sense to me to link us to better rights for renters, so that renters benefit as well. And that makes sense to me.

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“But I would be reluctant to do any major tax measure out of the context of a budget.

“Anything meaningful will cost a significant amount of money and I think doing that outside of the budget context, would be unwise, but the budget is not not all that far away.”

Housing Minister Darragh O’Brien is due to bring a proposal to Cabinet within two weeks on whether to extend the eviction ban.