Sherry FitzGerald welcomes Key Housing and Infrastructure Measures in Budget 2026

Sherry FitzGerald welcomes Key Housing and Infrastructure Measures in Budget 2026

Marian Finnegan, CEO, Sherry FitzGerald Group

 

Tuesday, October 7th, 2025

 

Sherry FitzGerald welcomes the €11.3bn allocation to the Department of Housing, Local Government and Heritage in Budget 2026. This year’s budget, while more restrained in current expenditure and with no changes to personal income tax, demonstrates a prudent focus on essential infrastructure.

 

Marian Finnegan, CEO, commented: “Budget 2026 demonstrates a renewed focus on delivering critical infrastructure that underpins both housing supply and economic growth. Measures supporting apartment viability and cost-rental developments are particularly encouraging, reflecting a pragmatic response to structural challenges in our housing market.”

 

Key measures include:

• VAT on new-build apartments reduced to 9%, effective immediately until end of 2030, improving project viability.
• A new exemption from Corporation Tax for rental profits arising from homes that are designated by the Minister for Housing, Local Government and Heritage (HLGH) as Cost Rental properties.
• Expansion of the Living Cities Initiative to regional centres until 2030, supporting regeneration of urban supply.
• Extension of the renter’s tax credit until 2028, providing immediate relief to tenants, though supply shortages persist.
• Continuation of mortgage interest relief into 2025 and 2026, supporting homeowners in a higher interest rate environment.
• New derelict property tax to replace the derelict sites levy, and extension of the Residential Development Stamp Duty Refund Scheme.
• Additional funding has been allocated for retrofitting and delivery of social homes, adaptation grants for older people and those with disabilities and the remediation of homes effected by defects.
• €1.2 billion euros for a programme to deliver thousands of starter homes alongside the Help to Buy scheme.

 

While these initiatives are indeed positive, Sherry FitzGerald cautions that meaningful increases in housing supply will take time.

 

Ms. Finnegan added, “Adjustments to VAT and corporation tax are positive, targeted steps that will enhance apartment construction viability. However, these benefits will require sustained effort, investment, and policy continuity to deliver the scale of housing our growing population needs.”

 

Approximately €4.9bn in funding for Uisce Éireann and EirGrid will further support key infrastructure, enabling future residential and economic development.

 

Budget 2026 introduces practical measures that, if effectively implemented, can strengthen Ireland’s housing market and infrastructure. While their impact will take time, the Government’s commitment to addressing the housing crisis in a structured, sustainable way is clear.