Sinn Féin TD for Cork South Central Donnchadh Ó Laoghaire.

BUDGET 2026: Housing package favours ‘those at the top’

Housing was one of the main focuses in Tuesday’s Budget 2026 announcement with a total of €11.3bn allocated to the department.

This includes €2bn for social housing, €1.2bn for a new starter home scheme, and €2.9bn for new-build social homes and the second-hand acquisitions programme.

It was also announced that the VAT rate on the sale of completed apartments is to be reduced to 9% from 13.5%.

“For first time buyers, for aspiring homeowners, and for those attempting to navigate the rental market - increasing supply is key,” said finance minister Paschal Donoghue in his Dáil Éireann speech.

Next year’s housing package will include an enhanced corporation tax deduction for apartment construction expenses and the expansion and enhancement of the Living City Initiative.

Enhanced funding of €563m has also been allocated to support the provision of homeless services.

Next year will also see the introduction of a new Derelict Property Tax which will be administered by the Revenue Commissioner, as well as the extension of the rent tax credit of €1,000 for a further three years.

However, Sinn Féin TD for Cork South Central Donnchadh Ó Laoghaire has said the vast bulk of the taxation package benefits those on the highest incomes.

Deputy Ó Laoghaire said: “This is a budget written by Fine Gael designed to look after those who Fine Gael always look after – those at the top.

“We have perhaps the largest tax cut package in the history of the state - almost €2 billion in tax cuts - but which ordinary workers will see very little of.

“Fine Gael's priority is landlords, developers, and the banks, and the vast bulk of this tax package is focused on them,” he added.

Speaking to the Irish Independent after Tuesday’s meeting of the Dáil, Minister Donoghue defended Budget 2026, saying: “We have 19 billion euro worth of investment next year in our country's future. If we're going to make such a big increase in the amount of capital spending that we have, we do have to make some choices and we do have to look at how we can support jobs, which I know really matter to those who are in the middle and that's what this budget is aiming to do.”