Help to Buy scheme extended, rent tax credit increased

Minister for Finance Jack Chambers said the Help to Buy will be extended to the end of 2029, which he said will give certainty to future home buyers and to the market.

He noted that since its introduction, the scheme has supported just over 50,000 individuals or couples buy their own home.

Measures in Budget 2025 will also see the value of the rent tax credit increase by €250, bringing it to €1,000 and €2,000 for a jointly-assessed couple for 2025.

In recognition of the cost of living pressures facing many renters, Mr Chambers said he would also increase the credit for 2024 to €1,000 and €2,000 for a jointly-assessed couple.

Mr Chambers also said to continue to help owners of vacant property to bring that accommodation into the rental system increasing the overall supply of rental accommodation, he would extend the relief for pre-letting expenses for landlords.

This means that the relief will continue for a further three years, to the end of 2027, he added.

The Minister also said that Mortgage Interest Tax Relief, which was announced in last year's Budget and which provided relief for mortgage holders who experienced increased interest rates in 2023 over 2022, will be extended for one further year.

"This extension means that the relief will also be made available to assist mortgage holders in respect of the increase in interest paid in 2024 over 2022," he added.

There is an increase on the higher rate of stamp duty on bulk acquisitions of houses from 10% to 15% with immediate effect in an effort to discourage significant purchases of houses by investment funds.

"I share the concerns of aspiring home owners that the bulk acquisition of houses impacts on the number of houses made available for purchase," Mr Chambers said.

The rate of stamp duty applicable to residential property valued above €1.5 million will also increase to 6% with effect from tonight.

The existing rate of 1% will continue to apply to values up to €1 million, and 2% on values above €1 million, with a third rate of 6% to apply to any value in excess of €1.5 million, he added.

Meanwhile, under Budget 2025 measures, the rate of the Vacant Homes Tax will increase from five to seven times the property's existing Local Property Tax rate. The increase will take effect from the next chargeable period, starting in November.

The Minister also announced the extension of the 9% reduced VAT rate for gas and electricity for another six months to April 2025. as part of the Government's cost of living package to support household and businesses.