Budget 2025 fails to increase housing targets, as access to housing the most pressing issue in the state
While this county is in a very healthy financial position entering Budget 2025, it is deeply disappointing that housing targets were not adjusted upwardly in line with recommendations of The Housing Commission report published earlier this year. Pascal Donaghue T.D., Minister for Public Expenditure, reiterated existing housing target of 10,000 social homes next year, as per Housing For All, costing €2billion. This is in the context of an estimated hosing deficit of 235,000 homes due to ongoing underdevelopment and supply.
To meet the existing development deficit and respond to growing levels of homelessness, housing targets need to be revised with urgency and reflect actual housing need rather than construction sector capacity.
Una Burns, Head of Advocacy and Communications with NOVAS, expressed ‘disappointment at the lost opportunity to increase housing targets and the subsequent capital budget for social, affordable and cost-rental housing, that this budget could have offered. This would have indicated an urgent commitment by government to stem the tide of homelessness with long-term, housing-led solutions. Notwithstanding this, NOVAS is heartened by the commitment to provide an additional €1.25billion to the Land Development Agency for the delivery of additional social and affordable housing and we look forward to seeing the impact this will have.’
There was also disappointment for renters in the private sector, who rely on rent supplement payments, with no indication of increases to HAP payments or other supplements to meet the growing cost of renting in this state over the last six years. Addition tax relief for pre-letting expenses for landlords is a welcome measure but falls short of a standard tax rate for rental income required to incentivise existing small landlords to stay in the markets as well as new entrants.
Notwithstanding these disappointments, there were some positive moves in the housing sector, including increased tax credits for renters, a higher rate of stamp duty for bulk acquisitions (15%) and an increase in the Vacant Homes Tax from five to seven times the value of the Local Property Tax.
There was also welcome inclusions in the social welfare package, supporting low income households, including an additional €12 per week on all social welfare payments, additional support for carers and people with disabilities and the roll-out of the School Meals Holiday Hunger pilot programme.
