O’Brien says renter tax credit to be extended in Budget

In an interview with the Irish Independent, O’Brien says Ireland has a “very significant housing problem” but believes “real progress” has been made on tackling the issue.

The renter tax credit, which was set at €500 in last year’s budget, is likely to see a rise as part of O’Brien’s contribution to the upcoming Budget.

“I’d like to see it increased to the average rent per renter which is currently €790 a month,” he says. “That’s per renter, so if you had two or three lads or girls renting they would all get it and it would make a big difference,” he said.

O’Brien Micheál Martin and Finance Minister Michael McGrath were “very supportive” of the tax credit”, which has seen a relatively low uptake among eligible applicants.

Out of the 400,000 renters eligible for the tax credit, only 230,000 had claimed it as of June of this year.

Speaking on the issue, Social Democrats TD Cian O’Callaghan said the low uptake was first flagged as far back as January and called on Government to launch an awareness scheme for renters.

O’Callaghan also noted that renters who are looking to avail of the tax credit are not able to as their landlord may not be registered with the Residental Tenancies Board,

O’Brien said the Government is committed to “meaningful and effective measures to retain and to attract good landlords,” and said he was looking to reduce tax on rental income earned by landlords in the Budget.

He said that his Budget submissions will specifically help “mom and pop” and accidental landlords who currently pay 50% in tax on all rental income.

The Fianna Fáil TD took aim at Sinn Féin and their housing policies, pointing to the Help to Buy scheme as a sign of Government’s attempts to tackle the housing crisis.

“The scheme has helped 40,000 people get a deposit together for a new home and what some people forget, especially the main opposition party Sinn Féin, is it is essentially putting people’s tax back in their own pockets – so I’d like to see it extended for another two years to give certainty.”

The recent headline figure of over 12,600 being recorded as homeless in Ireland was discussed by O’Brien, saying that the homeless crisis is the “first thing” he thinks about in the morning.

“I don’t say that glibly in any way, shape, or form – it’s the biggest single challenge,” he said.