Tánaiste rules out 'knee-jerk' response to rental crisis, saying Sinn Féin is playing politics

Micheál Martin meeting Hilary Clinton in New York today. Photo: Department of Foreign Affairs

Tánaiste Micheál Martin has poured cold water on the introduction of pre-budget tax breaks for landlords, saying there can’t be a “knee-jerk” reaction and insisting the government has turned the corner on house building.

His comments come as reports suggested the Coalition was considering pre-budget tax measures for the rental sector following ongoing criticism over the lifting of the eviction ban and fears of an exodus of landlords from the market, further hindering supply.

Speaking to reporters in New York, Mr Martin said the government has already said there would be a package in respect of the rental sector in the next budget, and that remains its position.

“There can't be knee-jerk responses to the situation, because any one particular measure could have unintended consequences. So it's got to be fully fleshed through and the Budget is the proper context for doing that,” Mr Martin said.

Any taxation measures announced in the Budget will have to be sustainable and long-term to give certainty to the market around supply, he said.  He said this does not only mean incentivising landlords who are in the market at the moment to stay but also to attract new landlords to provide homes to rent.

The Tánaiste argued that figures for January this year indicated the government has “turned the corner in respect of house building”, particularly in terms of first-time buyers. He said there are “significant numbers” of people, up to 7,000 in January alone, applying to the Government's Help to Buy scheme while 9,000 houses were completed in Quarter 4 of 2022.

He said there were over 2,000 housing commencements in January this year, the highest since records began and this, he said, indicated significant activity in the housing market.

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Reacting to Sinn Féin’s Dáil motion to extend the eviction ban until January 2024, Mr Martin said this would mean lifting the ban days before Christmas this year.

He said the Attorney General’s advice was that if the eviction ban was to remain in place, it should be for two years. He said this would damage the long-term sustainability of the rental market.

“I think Sinn Féin is playing politics with this and how cynical is it that, after the criticism I made last week when I mentioned that they were intending to lift the ban days after Christmas Day, they now put in a date of January 2024. To me, that's a very cynical and dishonest maneuver by Sinn Féin and it just illustrates the degree to which they're playing politics with a very serious issue,” Mr Martin said.

He said the tenant in-situ scheme needs to be applied “rigorously” and directions have now been issued to local authorities in that respect.