A number of initiatives which will impact the housing market were announced in Budget 2017 this afternoon. Among those; a Help-To-Buy scheme was one of the most anticipated. Under the scheme a 5% rebate will be provided on income taxes paid by First-Time Buyers of a newly built home, capped at €20,000. Houses purchased beyond €600,000 will attract no rebate. Taxes on all inheritances will be reduced, especially from parents to children where the threshold for CAT will rise to €310,000.
In the rental market – the ceiling for the Rent-a-Room scheme has been increased by €2,000 and now stands at €14,000 compared to €12,000. Landlords received a 5% increase in the amount of mortgage interest they can deduct. This will now stand at 80% in 2017, from 75% previously.