A landlord reacts to Budget 2024: ‘I fear it’s not going to be enough to stem the exodus from sector’

Landlord Maurice Deverell has been in the business for 27 years, owning properties in both Dublin and the UK.

The sector is going through one of the most financially challenging periods ever, he says. However, a tax relief primarily targeted at small landlords is a “welcome recognition” of the role they play in the private rental market.

Under the new relief scheme, €3,000 of landlords’ rental income will be taxed at the standard 20 per cent rate rather than the higher rate next year, resulting in an additional €600 to the landlord.

This will increase to €4,000 in 2025, resulting in a benefit of €800 to landlords, before rising again to €5,000 in both 2026 and 2027, which will result in a €1,000 annual benefit.

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[ Landlords to benefit from budget tax break of up to €1,000 with rent tax credit to hit €750 ]

“We welcome that the Government recognised small private landlords. But I fear the new relief, which would work out at €11 a week, is not going to be enough to stem the exodus of landlords,” he says.

“The cost of everything is going up, and by much more than €11 a week. It’s not going to make things much better. It might persuade a couple of landlords to stay. But it just won’t do what they [the Government] want it to do.”

Mr Deverell says reducing landlord’s income tax to 25 per cent would have been a more effective decision, and would have created a more even playing field in terms of the taxes imposed on small landlords and real estate investment trusts (REITs).

Another option that would have been more effective, he says, are changes to the rules around capital gains tax. He suggests allowing landlords who kept properties in the market for the next seven years be exempt from the tax.

On the tenants’ side, Mr Deverell welcomes the rise in the rental credit for tenants, but says an increase to €1,000 rather than the €750 that was announced would have been more beneficial.

Overall, Mr Deverell says he is happy with Budget 2024. “Well, I’m happy compared to the last number of years. My expectations were really not that high. I’ll notice it [the difference] a little bit. It’s better than nothing.”