The government has splashed the cash to the tune of half a billion euro in order to provide tax cuts for multi-millionaire investor funds and developers, according to Social Democrats housing spokesperson Rory Hearne.
Deputy Heane said:
“Those in need of affordable homes – renters, generations stuck in their childhood bedrooms, and working families – will see little change from a budget completely lacking in vision.
“Minister for Public Expenditure Jack Chambers said housing is a top priority in this year’s budget – now that it’s here, I’m struggling to see any evidence of that.
“Budget 2026 is peppered with u-turns on election promises – 2025’s budget was defined by its brazen electioneering, while this year’s reverts to form, delivering tax breaks for those they’re in bed with.
“Fine Gael and Fianna Fáil are still taking a ‘wait and see’ approach to the housing crisis – for years, they’ve said their policies would lead to an increase in supply and lower prices, yet all we see is a dearth of delivery and rising costs.
“The government is removing rent controls and allowing rents to spiral out of control while there are record numbers of children in homeless accommodation – yet it’s made sure that tax breaks are given to developers to line their pockets.
“The absolute gall of the Minister to call this housing plan ‘radical’ – what exactly is radical about tiny apartments, sky rocketing rents, record homelessness and deciding that the solution must be tax breaks for developers?
“The construction industry federation spent this summer lobbying for this abomination of a budget, and they’ve been rewarded by a subservient government.
“The rate of VAT applied in Ireland on apartment construction was already one of the lowest of 27 EU member states, well below the EU median of 20% – the clear message from this budget is that this government will never have the courage to end their cosy partnership with developers and investment funds and directly provide the housing that hundreds of thousands so desperately need.
“There’s no reason to believe that the change in VAT will lead to an increase in affordable housing provision – profits are bound to be pocketed as profits by developers and funds, just as we see with government subsidies.
“The 2024 social housing targets were 10,000 – this year’s see the pitiful addition of 200 more, showing the government’s lack of ambition and commitment to addressing a catastrophe that’s growing exponentially.
“There is no mention or focus on homelessness services, prevention or enabling over 16,350 people to exit out of homelessness in this budget – there is now no doubt that the housing crisis is not a government priority.
“The Social Democrats published proposals in our alternative budget for a €120 million modular homes factory to produce up to 2,000 homes every year, as well as setting aside an initial €20 million to start up a State-owned construction company.
“Such initiatives could have been funded by phasing out subsidies for private developers and investor fund landlords.”
October 7th, 2025