Fianna Fáil and Fine Gael clash over housing policies as Finance Minister Donohoe dismisses proposed tax breaks for developers. The Cabinet subcommittee on housing prioritizes tightening regulations on short-term lets amidst a shortage of long-term rentals.
Fianna Fáil and Fine Gael are on a collision course over housing after Finance Minister Paschal Donohoe rejected the idea of tax breaks for developers proposed by the Taoiseach. This comes just days after Tánaiste Simon Harris tried to distance himself from comments made by Micheál Martin regarding potential changes to Rent Pressure Zones (RPZs).
The Cabinet sub-committee on housing convened for the first time under this new government and for the first time since James Browne assumed the role of Housing Minister. Following the government's failure to meet its housing target of 33,000 last year, Mr. Martin stated last week that the government was exploring tax breaks for private housing developers. However, speaking in Brussels today, Minister Donohoe dismissed the prospect, asserting that previous incentives harmed the Irish economy. He cited Section 23 relief, a tax break applied to rented residential property in a designated tax incentive area, as an example. Mr. Donohoe emphasized the need to explore various policy changes to achieve the housing goal. He highlighted the importance of infrastructure development, meeting energy and water needs of new housing projects, and reconsidering planning permissions and land availability for building homes. From a taxation standpoint, he pointed to existing schemes like Help to Buy, the Shared Home Equity Scheme, and the zoned land tax as positive interventions. He pledged to continue working on these initiatives to assess their role in increasing housing construction. However, he firmly stated his opposition to reintroducing or proposing tax reliefs that previously caused significant harm to the economy and home building in Ireland. He cited Section 23 relief and other broad tax incentives aimed at stimulating home construction as costly measures that proved difficult to target effectively. Mr. Donohoe expressed his belief that these policies are not the path to achieving progress in delivering more homes. Last week, Mr. Harris attempted to distance himself from Mr. Martin's comments regarding RPZ legislation, which caps rent increases at 2 percent or the rate of inflation, whichever is lower. Mr. Harris indicated that his party would not support any measures that led to increased rents. Additionally, the Cabinet subcommittee on housing is expected to prioritize legislation to tighten regulations on short-term lets. As reported by the Irish Mirror earlier this month, short-term lets outnumber long-term rentals by 16 to one
Housing Crisis Ireland Fianna Fáil Fine Gael Tax Breaks Developers Rent Pressure Zones Short-Term Lets
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