BUDGET 2024: HOUSING UPDATE:
Budget 2024 was announced on Tuesday the 10th of October 2023 and included the following housing related provisions which aim to assist those in the rental market and the property market:
- Rent Tax Credit will be increased from €500.00 to €750.00 in 2024. The Rent Tax Credit will also be extended to parents who pay for rented accommodation for their student children, and this will be back dated to include tax years 2022 and 2023.
- Tax Relief for Landlords temporary rental income tax relief is being introduced to support private landlords. This relief will be available to private landlords from 2024 to 2027 provided that the landlord keeps their rental property in the rental market for the next 4 years. This relief will reduce the tax due on rental income by up to €600 in 2024, €800 in 2025 and €1,000 in 2026 and 2027. The relief will be clawed back by Revenue if a landlord leaves the rental market during the years 2024 – 2027.
- Mortgage Interest Tax Relief has been temporarily introduced (for a 12-month period) to assist homeowners who have been subject to interest rate increases and who had an outstanding mortgage balance of €80,000.00 to €500,000.00 on their principal private residence on the 31st of December 2023. This relief will be available on the increased interest paid by a homeowner in the year 2023 in comparison to the year 2022. Tax relief on the increase will be 20% and it will be capped at €1,250.00.
- The Help to Buy Scheme has been extended to 2025 and will also be available from the 11th of October 2023 to all applicants buying a home using the Local Authority Affordable Purchase Scheme.
- Social and Affordable Housing: 9,300 new build social homes are expected to be built in 2024 and 6,400 affordable and cost rental homes will be provided through the First Home Scheme and other schemes in 2024. Funding has been provided to accommodate 8,800 new Housing Assistance Payment (HAP) tenancies as well as 1,400 Rental Accommodation Scheme (RAS) tenancies in 2024.
- Vacant Homes Tax will be increased from 3 times to 5 times the basic Local Property Tax (LPT) rate from the 1st of November 2023.
- Residential Zoned Land Tax liability date has been extended to 2025.
- Homeless Supports funding of €242 million has been provided to local authorities to provide emergency accommodation for persons who are homeless
If you have any queries on any property related matter, please do not hesitate to contact Pauline Horkan, Lorna McArdle, Donna Phelan or Sally-Ann McCoy on 01 296 0666.
