Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

The strategy for the rental sector, developed under Rebuilding Ireland, was published in December 2016 and outlines a range of measures to develop further a viable and sustainable rental sector. Structured around the four key areas of security, supply, standards and services, the strategy sets out a number of targeted measures and initiatives with the aim of providing better security of tenure, achieving higher accommodation standards and greater rent certainty for tenants, as well as enhancing the supports and services available to landlords to facilitate the development of a more vibrant and sustainable rental sector. The strategy also aims to provide for other models of delivery of housing intended specifically for rental purposes.

In accordance with action 9 of the strategy, a working group on the tax and fiscal treatment of rental accommodation providers was established in 2017. The group was chaired by the Department of Finance and included representatives from the Revenue Commissioners, my Department and the Residential Tenancies Board, RTB. The group’s report was published by the Department of Finance on budget day 2017 and it presented ten policy options for consideration. These were divided into short-term, medium-term and long-term timeframes. Five potential short-term options were identified as measures which could potentially be implemented via budgets 2018 and 2019.

It is a matter for the Department of Finance to lead on the implementation of the group's policy options, in line with any related Government decisions. To date, the following policy options have been implemented. Option 1 concerns the accelerated restoration of full mortgage interest deductibility for landlords of residential properties. With effect from 1 January 2019, mortgage interest on rental units is 100% deductible for all landlords. Option 4 is in respect of introducing deductibility for preletting expenditure for previously vacant properties. Implementation of this policy option was prioritised in budget 2018 to encourage an increase in housing supply by bringing vacant properties back into use. I support any measures that help to maintain and increase the supply of rental properties.

See this speech in context