Property Industry Ireland Reaction to Budget 2026

Property Industry Ireland (PII), the Ibec group for businesses working in the property sector, welcomed today’s reduction in the VAT for new apartments from 13.5% to 9% and other measures to support the supply of new homes announced in Budget 2026.

 PII Director, David Howard stated: “Property Industry Ireland has long advocated for a reduction in the VAT charged on new homes as a way of offsetting the cost of construction. These costs undermine the viability of many potential new schemes and, ultimately, adds to the price of new housing, be it for owner occupancy or rental. Tonight’s reduction in VAT, combined with recent changes to apartment design guidelines and upcoming changes to rent regulations and the National Planning Framework, will contribute to making marginal apartment schemes viable and lead to more homes being delivered in the coming years. The revision of the Government’s Housing Plan expected in the coming weeks will provide another opportunity to bring prompt action in relation to these measures, ensuring confidence for investment and getting more families into new homes.”