He said the Government’s first priority was to retain existing investment in the rental sector, and then to make it more attractive for new investment to come in given “a steady, long-term supply of rental accommodation” is needed.
Under this backstop measure, the €450 million Croí Conaithe scheme announced last year would be extended in an effort to boost the number of apartments for sale, with the State subsidising developers to the tune of €344,000 per unit. The State would buy apartments that developers cannot sell on the open market and then lease these on a cost rental basis in an attempt to help developers secure funding and increase the rental housing stock.
“We have made no final decisions yet on the nature of any tax changes in the rental sector or indeed the reach of them… but we do intend to examine data in further detail and make decisions in the next number of weeks that I think will help to bring stability to the rental market.”Mr McGrath was supported in his comments by Minister for Enterprise Simon Coveney, who said the Government wants to see a stable and growing rental sector that is affordable for families, couples and individuals.