Ireland’s Budget 2026 is shaping to focus on addressing the housing crisis, with a mix of tax reforms, incentives, and funding allocations aimed at boosting supply and affordability. As we await October 7th and the official announcement of Budget 2026, here are the key housing-related measures expected or proposed.
A lot of the housing measures in the budget favour First Time Buyers and stimulating the building of new affordable homes.
Extension of Housing Support Schemes
Help to Buy and First Home Scheme will extend through 2030 and possibly as far as 2040. An additional €100 million is being allocated to this shared equity scheme, where the state can fund up to 30% of the purchase price of a new home in exchange for a share in the equity. This could support the purchase of up to 8,000 new homes.
The Croí Cónaithe (Cities) Scheme, currently with budget of €450 million, may continue though.
VAT Reduction on New Homes
A temporary reduction in the 13.5% VAT rate on new homes and apartments for first-time buyers is under consideration. This could reduce the cost of a typical three-bed home by over €50,000.
Residential Zoned Land Tax Reform
Further reforms should encourage the release of zoned and serviced land for development.
Stamp Duty Residential Rebate
Possible extension of the Stamp Duty Residential Rebate which is due to expire at the end of 2025. This could reduce costs for buyers purchasing new homes.
Employer-Led Housing Initiatives
Incentives for employers to build employee accommodation are being proposed.
Support for Delivering Housing
VAT reduction for certain undersupplied new developments may be on the cards. The VAT for developing apartments, student accommodation and independent living units may see a cut from 13.5% to 9% to stimulate speedy supply.