The housing crisis and Budget 2026
Three Chartered Accountants offer their take on Ireland’s housing crisis and the measures they would like to see in Budget 2026 to demonstrate Government commitment to tackling the issue effectively
Mairéad Hennessy
Principal
Taxkey
The Government must take bold, strategic action in Budget 2026 to address Ireland’s deepening housing crisis.
The chronic undersupply of affordable and appropriate housing is not just a social issue, it is a serious economic constraint, limiting labour mobility, suppressing productivity and undermining our global competitiveness.
To unlock supply, targeted, time-limited tax incentives should be introduced to support the construction of apartment blocks, independent living units and student accommodation.
These sectors are critically undersupplied. Supporting their development would free up larger homes for families while addressing the needs of renters, downsizers and students.
Incentives should be tightly scoped, time-bound and subject to clear cost-benefit analysis to ensure they are effective and deliver long-term value.
The Government should also consider reforming existing land taxes to encourage the release of zoned and serviced land for development. Measures such as a restructured land value tax could discourage land hoarding and incentivise the efficient use of zoned land.
“TO UNLOCK SUPPLY, TARGETED, TIME-LIMITED TAX INCENTIVES SHOULD BE INTRODUCED TO SUPPORT THE CONSTRUCTION OF APARTMENT BLOCKS, INDEPENDENT LIVING UNITS AND STUDENT ACCOMMODATION”
These tools, if carefully designed, could be powerful drivers of supply.
A targeted reduction in capital gains tax (CGT) on development land would further support the flow of capital into housing projects.
Further, aligning CGT payment and filing dates with income tax deadlines would simplify compliance and reduce administrative friction for investors and developers.
Pat Dennigan
CEO
Focus Ireland
Focus Ireland recognises that, while the building of new homes is key to solving the housing and homelessness crisis, it is just one part of the puzzle. We know that bricks and mortar alone won’t end homelessness in Ireland.
We provide assistance to thousands of individuals and families who need varying degrees of support in sustaining tenancies and exiting homelessness every year.
We want Government to commit to building the right housing in the right places, and we are awaiting the publication of the new National Housing and Homelessness Strategy in September, which we hope will give details of the Government’s commitment to ensuring that this is the case.
Budget 2026 offers an opportunity for Government to ensure that measures that both move people out of homelessness and prevent them from entering into homelessness in the first place are appropriately resourced.
We would like to see increased funding for second-hand acquisitions, which would allow local authorities to purchase scatter-site accommodation and meet targets for Housing First accommodation.
As a measure to prevent homelessness, we continue to call for additional measures to retain small-scale landlords in the residential rental market, including reallocation of funding for the Tenant in Situ scheme.
This measure has a proven track record as a safety net for people at risk of entering homelessness.
We also want to see the Government allocate resources to allow for increased rates under the Housing Assistance Payment (HAP) scheme.
Some 53,000 households currently rely on HAP to keep a roof over their heads, but the rates for the payment have not increased in close to a decade. As rents continue to rise, failure to increase HAP rates will inevitably lead to more people experiencing poverty and becoming at risk of homelessness.
“SOME 53,000 HOUSEHOLDS CURRENTLY RELY ON HAP TO KEEP A ROOF OVER THEIR HEADS, BUT THE RATES FOR THE PAYMENT HAVE NOT INCREASED IN CLOSE TO A DECADE”
Sarah McAleese
Senior Risk Consulting Associate
KPMG
Ireland’s housing crisis is driven by a mix of structural challenges: slow infrastructure delivery; construction inflation; planning uncertainty; and a chronic under-supply of affordable housing.
Budget 2026 must move beyond short-term measures and deliver a coordinated, long-term strategy to restore confidence and accelerate delivery.
I believe that a key priority for Government should be the removal of barriers to supply.
Developers face significant uncertainty due to delays in infrastructure provision and frequent changes to planning regulations.
Budget 2026 should commit to fast-tracking planning decisions, reducing appeal risks and providing ring-fenced infrastructure funding to unlock zoned land.
These steps would likely improve project viability and attract both private and institutional capital back into the market.
Rather than limiting who can build or buy, the focus should be on delivering more homes. Institutional investors have played a role in housing delivery, but policy volatility and rent caps have made the market less attractive.
Budget 2026 should prioritise policy stability and consider recalibrating rent caps to apply to tenancies rather than properties, improving investment predictability.
I believe that the Government should also rethink how we use the existing housing stock. Many older people remain in large homes no longer suited to their needs.
Budget 2026 should build on Budget 2025’s €100 million for home adaptations by introducing a Right-Size Living Grant to support downsizing.
Reforming the Fair Deal scheme to remove disincentives for selling the family home would further support this transition.
Additionally, Budget 2026 should introduce targeted tax credits or capital allowances for the conversion of unviable commercial properties into residential units, supporting urban regeneration and increasing supply without new land acquisition.
Budget 2025’s investment in vacancy activation (€31 million) and cost rental housing (€300 million) are strong foundations.
I believe that these should be scaled up in 2026, with added incentives for private owners and developers to deliver long-term affordability.
