Homeowners & Renters: What Budget 2026 Might Mean for You

Housing is always one of the most politically charged and emotionally resonant areas of any Budget. In 2026, changes to tax, supports, and incentives could shift the balance again - for renters, homeowners, and property investors alike. In this article, we explore the likely levers and how they could play out in real life.

The Rental Landscape: Reliefs, Regulation & Tax

1. Rent tax credit or reliefs
One of the most anticipated measures is whether the rent tax credit will be increased. Some reports suggest the existing credit (currently around €1,000 for individuals) may rise or be restructured. That could provide much-needed relief for renters, especially in high-cost urban areas.

2. Strengthened tenant protections and rent regulation
There are ongoing proposals to expand rent controls or limit landlord powers. Possible reforms in 2026 could include tighter rules around tenancy terminations and stronger security of tenure. For tenants, that means more stability - but landlords could see reduced flexibility.

3. Landlord taxation and rental income treatment
How rental profits are taxed is another flashpoint. Some policymakers are pushing for larger landlords to be taxed more like trading businesses, while smaller landlords could see greater deductions for maintenance, compliance, and energy retrofits. If adopted, these changes could reshape rental market returns.

4. Targeted reliefs for lower-income renters
Beyond blanket tax credits, Budget 2026 may introduce targeted supports for renters with lower incomes or those living in high-rent zones. Proposals from opposition parties have included rent freezes and extended means-tested renter supports - all designed to tackle affordability head-on.

Homeowners & Property Investors: Support, Incentives & Burdens

1. Green retrofit and energy upgrade grants
Energy efficiency is likely to remain a major theme. Expect expanded retrofit grants for insulation, solar, and heat pumps - especially as Ireland works toward its 2030 climate targets. These schemes not only reduce bills but can increase property value and comfort levels.

2. Stamp duty, VAT and property taxes
To boost supply and affordability, the Government could consider adjusting stamp duty on first-time buyer homes or apartments, and possibly reducing VAT on new residential construction or refurbishment. Any such cuts would make a real difference for both buyers and developers.

3. Extension of “Living City” and urban conversion reliefs
The Living City Initiative, which offers tax relief for converting old commercial or city-centre buildings into homes, could be extended. Expanding eligibility or simplifying the process would help bring more unused properties back into circulation - vital in dense city areas.

4. Support for non-profit and cooperative housing models
Approved Housing Bodies (AHBs) and housing cooperatives are calling for more flexible funding and reduced red tape. Budget 2026 may include new capital supports or loan guarantees to help scale community-led housing - a growing part of Ireland’s long-term housing strategy.

How These Measures Might Affect You

• Renters could see relief through a higher rent tax credit, stronger protections, and better access to affordable housing.
• Homeowners may benefit from expanded retrofit grants and lower transaction costs if stamp duty or VAT are reduced.
• Landlords might face tighter regulation but could gain from fairer deductions and incentives for upgrading properties.
• First-time buyers could finally get a leg up if tax reductions or targeted supports are introduced to offset high entry costs.

Final Word

Budget 2026 has the potential to move the needle on Ireland’s housing crisis - but the real impact will depend on the balance between protecting tenants, supporting landlords, and driving new supply. For renters, increased credits and security could offer breathing space. For homeowners and investors, fair taxation and retrofit supports may prove decisive.

At the heart of it all is one question: will Budget 2026 finally make housing more accessible and sustainable for everyone?