The Labour Party has called for the Government to double the Rent Tax Credit. 

The tax credit was introduced in Budget 2023 at a rate of €500 per eligible renter and has since been increased to €1,000. 

Ahead of next month’s budget, Taoiseach Micheál Martin has confirmed that the tax credit will be increased, praising the credit for the “positive” contribution it has made. 

However, he noted that many people who are entitled to it fail to claim it. 

On Newstalk Breakfast, Labour TD Conor Sheehan said he “welcomes” the proposed increase. 

“I would argue and the Labour Party have consistently argued that the renters tax credit should actually be doubled from €1,000 to €2,000 per individual,” he argued. 

“Especially considering that rents went up by 4.4% in the first quarter of this year because of the market rent reset element of James Browne's rent reform bill, which basically allows landlords to reset rents to market rates in between tenancies. 

“That is the largest increase since 2002 quarterly; rents are up 50% since COVID and more than 35% since the credit was first introduced.” 

A man holding a bunch of keys. Picture by: Alamy.com. 

When asked whether he believes that the credit risks fuelling a further increase in rents, the Limerick City TD said he did not believe that would be the case. 

“Landlords, I think, have already increased the rent at the start of this year,” he said. 

“We've seen sort of a stabilisation in the RTB data in the second half of the year. 

“So, rents have already increased, but the fact of the matter is that rents have literally never been as high as they are in this country at the moment.

“And I really think that this is a practical way that Government can help renters in what is a terrible cost to live in crisis.”

However, Deputy Sheehan did call for an end to two schemes, which are designed to help first time buyers onto the property ladder. 

“We would wind down the Help to Buy and the First Home scheme because they've been proven to be artificially inflationary,” he said. 

“If you look at the Central Bank data, they're very clear in their analysis that the Help to Buy scheme has actually overinflated house prices for new build properties in this country. 

“Developers often bake the tax credit in to the purchase of properties.”

Main image: Conor Sheehan. Picture by: Leah Farrell/RollingNews.ie.