Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
An account is an optional way to support the work we do. Find out more.
FactCheck
FactCheck: Is the Government giving landlords twice as much as renters in Budget 2024?
The claim was made in the Dáil during this year’s Budget speeches.
7.11pm, 10 Oct 2023
15.9k
THIS YEAR’S €14 BILLION Budget has been revealed, with a range of tax cuts, welfare increases and measures aimed at curbing different, ongoing issues affecting Irish society.
The housing crisis, one of the biggest of those issues, was one of the bigger Budget highlights, with separate measures announced for both renters and landlords alike.
But help for landlords in particular – tax relief on their rental income up to €3,000 – attracted criticism from the opposition, with Sinn Féin’s finance spokesperson Pearse Doherty calling it “one of the stupidest tax reliefs ever” provided by a Government.
The Donegal TD also claimed that the overall cost of the relief equated to double what the Government was giving renters in the Budget. But is he right?
The Claim
Sinn Féin’s finance spokesperson Pearse Doherty claimed that measures for landlords in Budget 2024 are worth around twice what the Government is giving to renters.
In a speech after the Finance and Public Expenditure Ministers delivered next year’s Budget, Doherty referenced both the €250 rise in the tax credit for renters and the tax relief that will be given to landlords in quick succession.
He then claimed that measures for landlords in the Budget would be around double what would be given to renters, saying:
“You simply couldn’t make this up. In this budget, this Government has provided nearly twice as much to landlords as it has to struggling renters.”
The Evidence
Let’s look at how much the Government will give both renters and landlords in next year’s budget.
Finance Minister Michael McGrath’s entire Budget 2024 speech can be read here.
For the second year in a row, the Government announced an increase in the Rent Tax Credit, which reduces the amount of income tax that a renter has to pay in one year.
It is worth 20% of a person’s rent payments for one year up to the maximum value of the credit.
Tax-paying renters can claim the money back from Revenue as long as their landlord is registered with the Residential Tenancies Board (RTB).
It can be claimed on an individual basis, so even those living with housemates or a partner can claim the full amount. Married couples and civil partners can claim together for double the amount.
Once an application for the credit is successfully made to Revenue, the value of the credit will then be added to the applicants overall tax credits for the year.
Claimants have up to four years to apply for the credit.
The credit was introduced last year, when the Government said it would be worth up to €500 in each year from 2022 to 2025.
Yesterday, the Government increased the value of the credit by €250 so that it will be worth up to €750 from 2024 onwards.
The credit has also been extended this year to cover students living in ‘digs’ under the ‘Rent a Room’ scheme.
It is estimated that 400,000 individuals are eligible to apply for the credit in 2023, though not all of these will be worth the maximum amount.
What will this cost the Government overall?
There are two ways of looking at this to answer how much renters have been given in next year’s Budget.
The first is to consider the €250 increase on its own terms, because that was what was announced in Budget 2024 – under this way of thinking, the €500 credit was an old measure that was already locked in.
The other way is to consider the entire €750 credit in its totality – because the government has budgeted for the value of the credit, rather than the increase, next year.
It is clear that the entire €750 credit will cost a lot more than the €88 million which yesterday’s announcement earmarked on its own. McGrath previously estimated that the €500 credit announced last year would cost in the region of €200 million in 2024.
Advertisement
If this cost carried over and was combined with the €88 million value of the increase, the total spend in 2024 would therefore be €288 million (though this is slightly back-of-the-envelope maths).
But what have landlords been given, and how much?
The other rental measure announced yesterday was a temporary tax relief for landlords, which the Government has said is aimed at stemming the flow of smaller landlords from the rental market.
Under the measure, landlords will be entitled to have rental income of up to €3,000 tax-free at the standard rate (20%) in 2024. This will rise to €4,000 in 2025, and again to €5,000 in 2026 and 2027.
In real terms, the measure will equate to a saving of 20% on each amount per year.
In other words, landlords will get tax relief of €600 (ie 20% of €3,000) in 2024. This will rise to €800 in 2025, and €1,000 for 2026 and 2027.
So who is getting more in Budget 2024: landlords or renters? As you can see from the evidence above, the answer depends on the way you look at the figures.
If the €250 increase in the Rent Credit is taken on its own (that is, without considering the €500 credit announced last year which will still form part of the overall credit), the Budget has earmarked €88 million for renters next year.
By comparison, the tax rent relief for landlords is expected to cost the Government €160 million in 2024 – around double the Rent Credit increase for renters.
Going by these figures, Pearse Doherty’s claim is accurate.
But the increase to the Rent Credit on its own doesn’t paint the full picture, because it only accounts for additional spending next year.
What’s actually outlined in the Budget is a €750 tax credit, which will be worth a lot more than the €88 million earmarked for the €250 increase alone.
Comparing everything given to landlords with everything given to renters is arguably a more like-for-like comparison than looking at new measures in this year’s Budget.
As noted above, the Government previously estimated that the €500 credit on its own would cost about €200 million a year (up until 2025).
If this cost carried over, the additional €88 million would therefore bring the total estimated spend on the Rent Credit next year to €288 million - over €120 million more than is being given to landlords in the form of tax relief.
In that case, Doherty’s claim would be very wide of the mark.
Verdict
Sinn Féin’s Pearse Doherty claimed in the Dáil that the Government would provide landlords with around twice as much as what they would provide renters in Budget 2024.
He criticised the Government for giving money back to landlords next year in the form of a temporary tax relief on income up to €3,000, and compared it to a €250 increase in the Rent Tax Credit for renters.
Figures outlined by the Government in Budget 2024 documents state that the landlords’ tax relief is expected to cost €160 million next year, compared to the increase in the Rent Tax Credit, which is expected to cost €88 million.
Doherty’s claim is therefore correct from that point of view.
However, the €88 million spend on increasing the Rent Tax Credit refers to the value of that increase alone; it doesn’t include the entire value of the Rent Tax Credit – worth €750 a year.
The cost of the Rent Tax Credit will be worth more than that increase on its own. The Minister for Finance said earlier this year, when the Rent Tax Credit was worth €500, that it was expected to cost €200 million next year.
If that amount carried over, the additional €88 million on top of this would therefore bring the total earmarked for renters in 2024 to €288 million (although it should be clarified that we don’t know that this is the figure).
Therefore, we rate the claim as MIXTURE.
As per our verdict guide, this means that there are elements of truth in the claim, but also elements of falsehood; or the best available evidence is evenly weighted in support of, and against, the claim.
The Journal’s FactCheck is a signatory to the International Fact-Checking Network’s Code of Principles. You can read it here. For information on how FactCheck works, what the verdicts mean, and how you can take part, check out our Reader’s Guide here. You can read about the team of editors and reporters who work on the factchecks here.
Readers like you are keeping these stories free for everyone...
It is vital that we surface facts from noise. Articles like this one brings you clarity, transparency and balance so you can make well-informed decisions.
We set up FactCheck in 2016 to proactively expose false or misleading information, but to continue to deliver on this mission we need your support.
Over 5,000 readers like you support us. If you can, please consider setting up a monthly payment or making a once-off donation to keep news free to everyone.
FactCheck
The Journal's monthly FactCheck newsletter keeps you in the loop about what misinformation trends Ireland is experiencing - and how we're fighting back. Sign up here
'A good deal for everybody': US and EU reach 15% tariff deal after Trump-von der Leyen meeting
Updated
4 hrs ago
48.6k
176
Time to say goodbye
Kerry manager strongly indicates he will step down after All-Ireland win
3 hrs ago
6.5k
Listeria
Various branded spinach and mixed leaves recalled due to detection of listeria
Updated
5 hrs ago
58.7k
Your Cookies. Your Choice.
Cookies help provide our news service while also enabling the advertising needed to fund this work.
We categorise cookies as Necessary, Performance (used to analyse the site performance) and Targeting (used to target advertising which helps us keep this service free).
We and our 214 partners store and access personal data, like browsing data or unique identifiers, on your device. Selecting Accept All enables tracking technologies to support the purposes shown under we and our partners process data to provide. If trackers are disabled, some content and ads you see may not be as relevant to you. You can resurface this menu to change your choices or withdraw consent at any time by clicking the Cookie Preferences link on the bottom of the webpage . Your choices will have effect within our Website. For more details, refer to our Privacy Policy.
We and our vendors process data for the following purposes:
Use precise geolocation data. Actively scan device characteristics for identification. Store and/or access information on a device. Personalised advertising and content, advertising and content measurement, audience research and services development.
Cookies Preference Centre
We process your data to deliver content or advertisements and measure the delivery of such content or advertisements to extract insights about our website. We share this information with our partners on the basis of consent. You may exercise your right to consent, based on a specific purpose below or at a partner level in the link under each purpose. Some vendors may process your data based on their legitimate interests, which does not require your consent. You cannot object to tracking technologies placed to ensure security, prevent fraud, fix errors, or deliver and present advertising and content, and precise geolocation data and active scanning of device characteristics for identification may be used to support this purpose. This exception does not apply to targeted advertising. These choices will be signaled to our vendors participating in the Transparency and Consent Framework. The choices you make regarding the purposes and vendors listed in this notice are saved and stored locally on your device for a maximum duration of 1 year.
Manage Consent Preferences
Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work.
Social Media Cookies
These cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then these services may not function properly.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not be able to monitor our performance.
Store and/or access information on a device 149 partners can use this purpose
Cookies, device or similar online identifiers (e.g. login-based identifiers, randomly assigned identifiers, network based identifiers) together with other information (e.g. browser type and information, language, screen size, supported technologies etc.) can be stored or read on your device to recognise it each time it connects to an app or to a website, for one or several of the purposes presented here.
Personalised advertising and content, advertising and content measurement, audience research and services development 195 partners can use this purpose
Use limited data to select advertising 158 partners can use this purpose
Advertising presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type or which content you are (or have been) interacting with (for example, to limit the number of times an ad is presented to you).
Create profiles for personalised advertising 119 partners can use this purpose
Information about your activity on this service (such as forms you submit, content you look at) can be stored and combined with other information about you (for example, information from your previous activity on this service and other websites or apps) or similar users. This is then used to build or improve a profile about you (that might include possible interests and personal aspects). Your profile can be used (also later) to present advertising that appears more relevant based on your possible interests by this and other entities.
Use profiles to select personalised advertising 120 partners can use this purpose
Advertising presented to you on this service can be based on your advertising profiles, which can reflect your activity on this service or other websites or apps (like the forms you submit, content you look at), possible interests and personal aspects.
Create profiles to personalise content 51 partners can use this purpose
Information about your activity on this service (for instance, forms you submit, non-advertising content you look at) can be stored and combined with other information about you (such as your previous activity on this service or other websites or apps) or similar users. This is then used to build or improve a profile about you (which might for example include possible interests and personal aspects). Your profile can be used (also later) to present content that appears more relevant based on your possible interests, such as by adapting the order in which content is shown to you, so that it is even easier for you to find content that matches your interests.
Use profiles to select personalised content 48 partners can use this purpose
Content presented to you on this service can be based on your content personalisation profiles, which can reflect your activity on this or other services (for instance, the forms you submit, content you look at), possible interests and personal aspects. This can for example be used to adapt the order in which content is shown to you, so that it is even easier for you to find (non-advertising) content that matches your interests.
Measure advertising performance 177 partners can use this purpose
Information regarding which advertising is presented to you and how you interact with it can be used to determine how well an advert has worked for you or other users and whether the goals of the advertising were reached. For instance, whether you saw an ad, whether you clicked on it, whether it led you to buy a product or visit a website, etc. This is very helpful to understand the relevance of advertising campaigns.
Measure content performance 78 partners can use this purpose
Information regarding which content is presented to you and how you interact with it can be used to determine whether the (non-advertising) content e.g. reached its intended audience and matched your interests. For instance, whether you read an article, watch a video, listen to a podcast or look at a product description, how long you spent on this service and the web pages you visit etc. This is very helpful to understand the relevance of (non-advertising) content that is shown to you.
Understand audiences through statistics or combinations of data from different sources 111 partners can use this purpose
Reports can be generated based on the combination of data sets (like user profiles, statistics, market research, analytics data) regarding your interactions and those of other users with advertising or (non-advertising) content to identify common characteristics (for instance, to determine which target audiences are more receptive to an ad campaign or to certain contents).
Develop and improve services 116 partners can use this purpose
Information about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers.
Use limited data to select content 51 partners can use this purpose
Content presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you).
Use precise geolocation data 65 partners can use this special feature
With your acceptance, your precise location (within a radius of less than 500 metres) may be used in support of the purposes explained in this notice.
Actively scan device characteristics for identification 36 partners can use this special feature
With your acceptance, certain characteristics specific to your device might be requested and used to distinguish it from other devices (such as the installed fonts or plugins, the resolution of your screen) in support of the purposes explained in this notice.
Ensure security, prevent and detect fraud, and fix errors 122 partners can use this special purpose
Always Active
Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them.
Deliver and present advertising and content 126 partners can use this special purpose
Always Active
Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device.
Match and combine data from other data sources 94 partners can use this feature
Always Active
Information about your activity on this service may be matched and combined with other information relating to you and originating from various sources (for instance your activity on a separate online service, your use of a loyalty card in-store, or your answers to a survey), in support of the purposes explained in this notice.
Link different devices 67 partners can use this feature
Always Active
In support of the purposes explained in this notice, your device might be considered as likely linked to other devices that belong to you or your household (for instance because you are logged in to the same service on both your phone and your computer, or because you may use the same Internet connection on both devices).
Identify devices based on information transmitted automatically 116 partners can use this feature
Always Active
Your device might be distinguished from other devices based on information it automatically sends when accessing the Internet (for instance, the IP address of your Internet connection or the type of browser you are using) in support of the purposes exposed in this notice.
Save and communicate privacy choices 103 partners can use this special purpose
Always Active
The choices you make regarding the purposes and entities listed in this notice are saved and made available to those entities in the form of digital signals (such as a string of characters). This is necessary in order to enable both this service and those entities to respect such choices.
have your say