The increase in rent tax credit will help tenants – but not as much as a rent freeze would, one renter has said.
As part of Budget 2024, the 500 euro rent tax credit available for both 2022 and 2023 is to increase to 750 euro next year.
Roux Mellet, 40, is living in a rented apartment in Sligo
Originally from South Africa, he has been in Ireland for more than three years.
Mr Mellet, who was helped and advised during a dispute with a landlord by the Community Action Tenants Union (CATU), said that although rent credits work, “a rent freeze would be better” as it would help more people.
“People won’t know about it and won’t be aware of it – it’s predicated on people thinking that something is due to them.
“If it was a blanket measure that everyone with a PPSN were to get this credit then yes… The barrier to entry is almost as bad as having the problem itself,” he said.
He said that more aggressive policies should be used to increase the supply of housing stock, and that a vacancy tax was not proactive enough.
But he said that the tenant in situ scheme is working, and he is aware of cases in Sligo that have benefited from it.
He added: “A rent freeze would be amazing, but the uproar that that would cause means it’s not something we would likely see.”
The rent tax credit, worth 1,000 euro across the years 2023 and 2022, is available to tenants who can claim it by completing an income tax return online via Revenue’s MyAccount or by completing a paper return.
Figures from government indicate that 238,066 households – either couples or individuals – have claimed for the credit as of July, with an estimated 400,000 eligible for the credit.
He said: “The (rent credit) is, to many people on the ground, hypothetical – they’re never going to even be presented with the option to apply for these things, I think.”
Asked about the government argument that the other budgetary measures – such as the three 150-euro energy credits and income tax tweaks – would also help people afford housing, he said “it’s true”.
He added: “All of these things, they will help some people, and they will help a great amount of people.
“But again, is it enough? It feels these are all just nice little things to roll out.
“Yes, that would definitely help. All measures that are meant to help people in the way that the government wants to help people without giving people the freedom to help themselves.”
Mr Mellet said that he does not expect the number of people with housing concerns to reduce off the back of this Budget.
“I myself, no optimism – now I have to take more than a 20 out of my wallet to pay for a pack of tobacco,” he added.
