The Irish government is reviewing its housing policy in an attempt to address the ongoing housing crisis, particularly the affordability of rental accommodation. Key areas under scrutiny include the Residential Tenancies Zone (RPZ) system and the introduction of tax incentives for private residential sector investors.
The Irish government is facing mounting pressure to address the ongoing housing crisis , particularly the affordability of rental accommodation for young people. While the government insists it has the right policies in place, recent data paints a concerning picture. New home completions, which reached a post-crash high of 33,000 in 2023, actually fell back to 30,330 units in 2024, falling short of government targets.
This decline is attributed to a number of factors, including a slowdown in apartment development and a decrease in private investment. The government has acknowledged the need to encourage more private sector involvement in the housing market, signaling a review of its current housing policy.A key area under scrutiny is the Residential Tenancies Zone (RPZ) system, which caps annual rent increases at 2 percent or the rate of inflation, whichever is lower. The system, which is due to expire this year, is seen as a deterrent by some private investors, while others argue it is crucial for keeping already high rents in check. There are also discussions about introducing tax incentives specifically for private residential sector investors to stimulate investment in the market.Taoiseach Micheál Martin has stated the need to create a more stable environment for investment, particularly in the apartment sector, which has seen a significant decline in recent years. Foreign funds, which had been driving a boom in apartment construction, particularly in Dublin, have pulled back due to higher interest rates and other economic factors. The government is aware of the urgency to address the situation and is working with industry stakeholders to find solutions. However, any changes to the RPZ system or introduction of tax breaks will likely face political resistance, given concerns about affordability for renters already struggling with high costs. The government faces a balancing act between encouraging investment and ensuring that rent increases remain manageable for tenants
Housing Crisis Ireland Rent Controls RPZ Investment Tax Breaks Apartment Development
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