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11th October 2024
11:15am BST
In Budget 2025, the government announced an enhancement to the rent tax credit, now set at 20% of yearly rent payments up to a maximum of €1,000 for individuals and €2,000 for couples annually.
This adjustment aims to provide increased financial relief to renters grappling with the persistent housing affordability crisis.
While the enhanced credit is a welcome development, public reactions indicate that many believe it still falls short of fully addressing the soaring rental costs, especially in high-demand areas like Dublin.
One renter said there is a general cautious optimism surrounding the new credit: “Some people will think it's not enough but I suppose, you have to be grateful for all you get.”
This shows a widespread appreciation for the government's effort, even as many recognise that the credit may not help with their overall financial burdens.
Despite the increase, the reality of high rents remains a serious issue.
“The rent is so expensive here like any little bit even helps, but it's probably not enough like rent prices are so ridiculous here,” one person said.
They highlighted the gap between the credit and actual rental costs, and said: “It's good that they haven't implemented a rise in it, but still, I think people are still really going to struggle with it regardless.”
This shows the persistent gap between governmental support and the escalating rental market.
“You know, I work with the girl who is really just for her utilities and her rent every month so on top of your rent you know you have your utilities,” another person noted.
This shows the compounded financial pressures faced by many renters, particularly those employed part-time or earning minimum wage.
“Whether that's enough working a part-time job or working on minimum wage I don't know really, but I mean everything helps, I guess,” they added, acknowledging that while the increased credit provides some relief, it may not fully aid living costs.
While the enhanced rent tax credit is recognised as progress, many believe it doesn’t fully address the core issue of rental affordability.
“It doesn't tackle the issue at all, like, but obviously it's a step in the right direction,” one person commented.
This highlights a common frustration that, although the credit is beneficial, more comprehensive measures are necessary to effectively tackle the housing crisis.
