This scheme has been in operation since 2022 and has been extended multiple times since its introduction. It has involved a significant financial commitment from the State, with approximately €438 million issued in payments. Around 23,500 participating households are currently receiving support through the programme, providing accommodation for an estimated 42,000 individuals. The scheme represents an ongoing monthly cost of approximately €14.5 million. There is a clear and growing problem with the way the current rental support schemes are structured. The tax treatment available to landlords renting to beneficiaries of the temporary protection directive creates a significant financial advantage over renting to Irish tenants. Under the standard system, a landlord renting a property for €1,200 per month to an Irish tenant may pay roughly €400 per month in tax. However, under the temporary protection scheme, the first €600 per month is entirely tax exempt, leaving tax payable only on the remaining €600. In practice, this reduces the tax burden to approximately €150. It is obvious why many small landlords are opting for the scheme. The tax incentives heavily favour one route over the other. While Ireland acted swiftly and generously to support those fleeing the war in Ukraine, something we can all stand over, we are four years into this and it is increasingly clear that elements of the scheme are having unintended but very real consequences for Irish renters. The current set-up places Irish tenants at a structural disadvantage in a market where supply is dangerously limited. I have consistently argued that small landlords should receive a universal tax relief, such as a €1,000 per month tax-free allowance to keep the properties in the wider rental market and ensure fair competition for all owners. Unless the Government addresses this imbalance, more landlords will continue to exit the traditional rental system in favour of the more financially attractive option, worsening access for Irish households. The support scheme has delivered strong benefits for those it was designed to help but as it stands it creates an inequitable situation that must be corrected if we are serious about protecting fairness, supply and balanced access in the housing market.

Sentiment score: 0.25