Leo Varadkar says he supports tax cuts for landlords to stop them fleeing rental market


Tánaiste Leo Varadkar is in favour of tax cuts for landlords in the Budget to encourage them to stay in the rental market.

e was speaking as new figures from Daft.ie showed record rent costs with an unprecedented shortage of properties.

Figures from the Rental Tenancies Board have also shown landlords choosing to cash in on their properties by selling up, further reducing the number of homes available to rent.

“Having some tax changes in the Budget to encourage landlords to stay in the market, not just sell up, I think that would be a good idea. A lot of people are losing their homes because landlords are selling up,” said Mr Varadkar.

“But if we do something for landlords in the Budget, I think we’d have to do something for renters as well.”

Housing experts have previously said tight rental controls may force small landlords out of the market.

Currently, landlords have to pay tax of up to 52pc on the rents they receive from their properties.

Mr Varadkar said the Government will have to “reflect” on the rate at which landlords are selling up.

“Another thing that we need to look at over the course of the next few months either for the Budget or beyond is what we can do to reduce the speed at which landlords are leaving the sector.

“I know it may not be popular to say so but the truth is more and more landlords are just selling up and have decided that it’s easier to sell their property than continue to rent it and we just need to reflect on that and see what we can do to improve things.”

He was speaking at the launch of Irish drone company Manna’s drone delivery service in Balbriggan, north Dublin.

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Eoghan Huston of Manna, drone controller Charlotte Rayburn, Alan Farrell TD, Tánaiste Leo Varadkar and Manna CEO Bobby Healy during the launch of Manna Drone Delivery operation at Millfield Shopping Centre in Balbriggan. Picture: Gareth Chaney/Collins Photos

Mr Varadkar said there will be “very substantial” income tax and USC cuts for workers in the Budget.

He said a 30pc income tax rate is under consideration, which will see about one million people benefit.

“It will contain a substantial income tax package that will reduce income tax for low-income workers, for middle-income workers and high-income workers. In particular, it puts emphasis on middle-income workers,” Mr Varadkar said.

“What is agreed is that we will see a very substantial income tax reduction package in the Budget, almost all workers will benefit from that.”

Mr Varadkar said the average person now pays €800 less tax per year than they did eight years ago.

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