Referred to as the ‘Cost of Living Budget’, a number of provisions were put in place in Budget 2023, with a large focus on housing.
On Tuesday, 27th September 2022, Minister for Finance Paschal Donohue and Minister for Public Expenditure Michael McGrath revealed the €11 billion budget, inclusive of a one-off cost of living package worth €4.1 billion.
Housing Outcomes from Budget 2023
Aimed at helping households, this budget set out to pay particular attention to inflationary pressures, soaring energy prices and the ever-present housing crisis – with a number of measures discussed.
Help to Buy Scheme
After much anticipation regarding the scheme, it was announced that the Help to Buy Scheme would be extended for an additional two years until the end of 2024, at which point it would re-enter review.
The scheme would remain under review as a report on the scheme is under works – at which point a number of recommendations regarding its future will be made.
Yearly Tax Credit for Renters
It was also revealed that a new tax credit would be introduced, at €500 per year, aimed at those who do not avail of other housing supports. This will apply in 2023 and for subsequent tax years, and can be claimed in respect of rent paid in 2022.
It is estimated by the Government that some 400,000 people are expected to benefit from this move.
Vacant Homes Tax
As part of its efforts to make more efficient use of existing housing stock, a Vacant Homes Tax will be charged at a rate equal to three times the property’s existing basic Local Property Tax rate.
This tax is to apply to residential properties that have been occupied for less than thirty days within a twelve-month period, with certain exemptions to ensure no unfair charges in respect of ‘genuine reasons’.
Penal Tax on Concrete Products
Levied to pay for the Mica Redress Scheme, a 10% penal tax will apply on all concrete blocks and concrete products with the aim of raising €80 million per annum for some 5,000 homes in Donegal and others in Sligo, Clare and Limerick.
Funding for Housing
A total of €6.2 billion has been made available to the Department of Housing – €1.7 billion of which will be spent in 2023 to deliver on the social housing new-build target of 9,100 homes.
It is also planned that 5,500 new affordable homes, both for sale and rent, and 6,500 new social homes, will be supported.
€215 million is to be provided to address homelessness, and €87 million to support the retrofitting of social housing.
Funding is to be allocated also to support 8,800 new Housing Assistance Payment (HAP) tenancies, in addition to 800 Rental Accommodation Scheme (RAS) tenancies.
Lastly, expenses accrued by landlords prior to them letting properties are now claimable for amounts up to €10,000.
Speaking in reference to the above commitments, Minister Michael McGrath said that the Government has seen significant progress in the housing market after a ten years of undersupply.
“It is clear, however, that more needs to be done. For many, rents are too high and the hope of owning their own home seems out of reach,” he commented.
If you enjoyed this article about Housing Outcomes from Budget 2023 take a look at our News section to see more.