Government told to consider tax breaks for landlords who give long leases to tenants
The Government has been told by one of its key policy advisers to consider tax breaks for landlords who offer more secure tenancies for renters.
The National Economic and Social Council report entitled ‘Private Rental in Ireland’, which will be published tomorrow, has recommended that improved tax treatment of rental income for private landlords could be introduced.
NESC advises the Taoiseach and the Government on economic, social and environmental policy.
The report notes the major shift towards rental and away from home ownership in Ireland and that the proportion of households renting has risen from 8pc in 1991 to about 18pc in 2016.
It highlights the potential to reduce the need for individuals to become homeowners by changes to the rental sector.
It argues that improved tax treatment of rental income for landlords could be introduced and says there is a case for linking this to more secure occupancy for tenants.
It also recommends that a potential source of additional rental property is vacant and derelict property.
The report highlights two current incentives for property renovation and also notes that Ireland’s existing Rent Pressure Zones were recently extended until the end of 2024.
It says that consideration should be given to the question as to whether there is sufficient market sensitivity in Ireland’s model of rent control in situations where rents have fallen substantially below the market level.
It gives an economic assessment of the continuing rationale for ownership and highlights the potential to reduce the need for individuals to become homeowners by continuing reforms of the existing rental sector and efforts to drastically grow the alternative non-market rental sector.
A government spokesperson said the report will feed into future reviews of government housing policy.