The Department of Housing, Local Government and Heritage has secured a record €11.275 billion in Budget 2026—a 20% increase on last year—marking the Government’s most substantial investment yet in housing, homelessness, infrastructure, and environmental protection.
Minister for Housing James Browne TD said the budget represents “a housing-first budget,” with over €9 billion in capital investment to accelerate social and affordable housing delivery and tackle homelessness.
Housing: Supply, Affordability, and Renters’ Relief
Housing dominates the allocation, with €7.21 billion in exchequer funding—€5.19 billion capital and €2.02 billion current—complemented by Land Development Agency and Housing Finance Agency investment, bringing total capital housing funding above €9 billion.
Key housing measures include:
- €2.9 billion to deliver 10,200 new-build social homes;
- €1.2 billion for 7,500 affordable purchase and cost rental homes;
- €563 million for homeless services—a 71% increase, focused on emergency accommodation and tenancy supports;
- Extension of the €1,000 rent tax credit for three years;
- €570 million to support over 70,000 households in the private rental sector through HAP and RAS schemes.
To spur apartment construction and boost affordability, the Government will reduce VAT on new apartment sales from 13.5% to 9%, introduce enhanced corporation tax deductions, and apply a 0% tax rate on cost rental income.
Minister Browne said these tax interventions are aimed at unlocking stalled apartment developments and making cost rental more viable:
“These are targeted, practical steps to close the viability gap and accelerate delivery where demand is highest.”
Vacancy and Dereliction
The Government will introduce a new Derelict Property Tax, administered by the Revenue Commissioners, replacing the current levy to better enforce reuse of vacant homes. Additionally:
- €165 million is allocated for the Vacant Property Refurbishment Grant;
- The Living City Initiative is extended to 2030.
Supports for Older People, People with Disabilities and the Traveller Community
- €130 million (up 30%) to support 17,000 home adaptation grants;
- An additional €28.5 million to upgrade 1,800 social homes;
- €34 million to support Traveller accommodation and repairs.
Water Infrastructure: €2.5 Billion to Accelerate Housing Delivery
Funding for Uisce Éireann rises by 29% to €2.2 billion, with total water infrastructure investment reaching €2.5 billion, supporting key national projects and enabling new housing. This includes:
- Equity investment of €2 billion to 2030;
- €2.5 billion for major strategic initiatives including the Water Supply Project and Greater Dublin Drainage.
Planning and Urban Development
Over €400 million is allocated for planning, with:
- €300 million for the Urban Regeneration and Development Fund (URDF);
- Increased resourcing of An Coimisiún Pleanála and planning authorities;
- Continued implementation of the Planning and Development Act 2024.
Minister of State John Cummins TD stressed:
“A functioning, well-resourced planning system is central to timely housing and infrastructure delivery. This funding ensures that system is ready to meet demand.”
Local Government and Reform
A total of €801.7 million is provided to support local authorities, up €117 million, covering:
- Local property tax equalisation;
- Fire service upgrades and digitisation;
- Local electoral reform and community engagement.
Heritage and Biodiversity: €256 Million for Nature Restoration
Budget 2026 delivers a 15% increase in funding for nature, heritage and biodiversity to €256 million. For the first time, the National Parks and Wildlife Service will receive over €100 million. Investments include:
- Expanded species recovery and invasive species control;
- Continued heritage grants under the Community Monuments Fund, Built Heritage Investment Scheme, and Historic Structures Fund;
- A 10% increase for National Monuments and Built Heritage Services;
- Support for progressing UNESCO World Heritage nominations.
Minister of State Christopher O’Sullivan TD called it “a symbolic milestone that reflects the State’s growing commitment to climate action and environmental stewardship.”
Conclusion
With Budget 2026, the Government is placing housing delivery, homelessness, planning reform, and environmental restoration at the heart of its national agenda. Ministers say the investment lays the groundwork for meeting Housing for All targets, improving public services, and ensuring long-term resilience.
Minister Browne concluded:
“This is a budget that recognises both the urgency of the housing crisis and the scale of the environmental and infrastructural challenge ahead. We are delivering on both fronts.”
