Irish landlords to benefit from tax breaks

Small landlords in Ireland are set to benefit from new tax breaks to keep them in the rental market.  

While the details are yet to be finalised, The Irish Times reports the Minister for Finance Michael McGrath told the newspaper he is keen to bring ‘stability’ to the rental sector at a time of supply crisis, as 'too many landlords have been exiting the sector.’ 

He said: “We have seen too many landlords exit the market. It’s not always because of tax reasons, but tax can be a factor in some cases.”  

He said the Government’s first priority is to retain existing investment in the rental sector, and then to make it more attractive for new investment to come in, given ‘a steady, long-term supply of rental accommodation’ is needed. 

The NRLA has welcome the news. Policy and Campaigns Director Chris Norris said: “We applaud the Irish Government for recognising the valuable role that smaller landlords play in the provision of vital homes to let and would urge the British Government to follow suit.  

“We are keen to hear more about the package of tax breaks the Irish Government is proposing and will continue to campaign for the reintroduction of Mortgage Interest Relief and other financial incentives that will encourage landlords in England and Wales to remain in the market and continue to invest, at a time of ever-increasing demand.  

What does the NRLA want?  

Record number of landlords – 33% – have said they planned to sell off some or all of their rented homes and landlord confidence has dipped to record lows, despite demand for homes increasing by 67%. The NRLA is now calling on the Government to undertake a full review of the impact of recent tax rises on the sector, with a view to: 

  • Scrapping the changes to mortgage interest relief (MIR). 

  • Ending the stamp duty levy on additional homes where the property is adding to the supply of housing 

  • Ending the Land Transaction Tax (the Welsh version of stamp duty) levy on buy-to-let properties and  

  • Reducing the capital gains tax (CGT) rate for the sale of residential properties  

The association believes these changes could help turn the tide and prevent further sell offs, meaning more homes for tenants, and – with greater choice within the market – more affordable rents.  

You can read more about the NRLA’s tax calls here.