A record €6 billion capital investment in housing during 2025, announced in Budget 2025, aims to sustain the recent strong momentum in delivery under the Government’s ‘Housing for All’ strategy. The funding includes €3.1 billion Exchequer funding, €1.25 billion for the Land Development Agency (LDA) and €1.65 billion for the Housing Finance Agency (HFA).
In announcing the Budget package for 2025, Minister for Housing, Local Government and Heritage, Darragh O’Brien, emphasised that the recent upward momentum in housing delivery will continue to grow due to Budget 2025.
“The €6 billion in capital will help us to deliver social, affordable and cost rental homes for our people. We’re the top country in Europe for housing construction – with a growing sector – and expected to keep growing – while declining elsewhere in the continent.
“More than €2.3 billion in affordability investment will support the initiatives put in place such as the First Home Scheme, the Affordable Housing Fund, the Secure Tenancy Affordable Rental (STAR) scheme and the Help-to-Buy initiative.
“The First Home Scheme will receive a further €80 million in Exchequer funding in 2025 which will be matched by participating banks, meaning €160 million will be available next year to support the purchase of some 2,000 homes.”
He noted that the Minister for Finance Jack Chambers has extended the Help-to-Buy scheme to the end of the decade. “Over €2 billion in capital investment in social housing will be focussed on new build homes by local authorities and our Approved Housing Bodies who are crucial delivery partners.
“An additional 10,000 households will have their housing needs met under the Housing Assistance Payment and Rental Accommodation Scheme, as well as continuing support for 66,000 active tenancies under these schemes.”
Minister O’Brien noted that increased tax credits to €1,000 for renters for 2024 and 2025 will assist them in the immediate term while expansion of affordable cost rental is set to make a massive difference. “The Residential Tenancies Board will receive funding of €14.5 million, while €10.5 million will be provided for local authority inspection activity in the rental sector to ensure compliance with rental standards.”
Funding of €303 million has been made available to deliver homeless services with a particular emphasis on ensuring that households at risk of homelessness are prevented from entering emergency accommodation and those in such accommodation are supported to exit into secure tenancies as quickly as possible. This level of funding will be kept under ongoing review throughout 2025.
