The new Government housing plan, Delivering Homes, Building Communities (2025–2030), published in November 2025, sets an ambitious target to deliver 300,000 homes by 2030, including 72,000 social homes and 90,000 starter home supports, underpinned by €50 billion in investment and major infrastructure upgrades.

The plan prioritises accelerating supply through zoning, regulatory reform, tax incentives, and modern construction methods, while addressing homelessness and vacancy and creating sustainable communities. Crucially, it signals strong private sector involvement alongside State-led delivery.

Headline investment signals

• The plan estimates that approximately €20 billion per annum in development finance will be required and positions the State as a catalyst rather than the primary funder.

• An additional €2.5 billion capital is committed to the Land Development Agency (LDA).

• The €400 million Ireland Strategic Investment Fund (ISIF) equity programme for homebuilding is renewed, alongside expanded capacity for Home Building Finance Ireland (HBFI). Enhanced ISIF-bank partnerships are also envisaged to broaden financing products for developers, supporting forward funding and enabling delivery at scale, particularly for apartment‑led schemes.

• Separately, the Department of Housing published a sectoral investment plan on 9 December 2025 allocating almost €25 billion in National Development Plan funding to housing until 2030.

Taxation measures to improve apartment viability

The plan reinforces the suite of measures announced in Budget 2026. See our separate briefing for further detail: Tax measures to support the housing market – update on Finance Bill 2025

The reduction in the VAT rate on the sale of completed apartments from 13.5% to 9% and the enhanced corporation tax deduction for apartment construction and conversion are both highlighted.

It is not specifically mentioned in the plan but Committee Stage amendments to the Finance Bill extended the 9% rate to the construction of apartments and the supply and construction of apartment blocks, including forward funding transactions and student accommodation.

Further Committee Stage amendments enabled forward funding models to benefit from the enhanced corporation tax deduction. Where the beneficial owner of the land cannot claim the relief directly, they may provide a written declaration to the contracted development company, allowing that company to claim the deduction.

Further measures to improve viability

Beyond tax, the plan outlines a package of previously announced measures designed to make apartment development more deliverable.

PBSA

The plan contains limited new detail on student accommodation beyond reiterating a commitment to invest €100 million in delivering 1,000 extra student accommodation beds and to publish the long awaited strategy on student accommodation “shortly”. It is not specifically mentioned in the plan, but the Government has confirmed that PBSA will be on a three-year rent cycle from 1 March 2026. Read our briefing on the proposed treatment of PBSA here:  Government publishes Q&A on PRS market reforms – PBSA to be on three-year rent cycle. PBSA investors have expressed concern that investors will not be attracted back into the market if rent resetting is not permitted for three years. Media reports indicate that the Department of Higher Education is pushing for the three-year rent cycle to be reduced to two so it remains to be seen how the Government will implement this measure in the Residential Tenancies Bill to be published shortly.

Short-term lets

The plan restates the intention to enact the Short-Term Letting and Tourism Bill by May 2026. New regulatory controls will include a Fáilte Ireland-managed register of short-term lets (STLs). From May, all hosts offering STL accommodation for periods up to and including 21 nights must register with Fáilte Ireland, confirm planning compliance, and display a valid registration number when advertising an STL. See the Government’s recent press release: Short-term letting in Ireland – what you need to know.

Energy efficiency in rented property

The Government will explore new incentives to boost energy performance in the private rental sector and highlights the Budget 2026 extension to 2028 of the income tax deduction for small landlords who retrofit. The Energy Performance of Buildings Bill, to transpose the Recast Energy Performance of Buildings Directive (EPBD), is listed for priority drafting in the Government’s current legislation programme, with further detail expected in H1 2026 ahead of the 29 May transposition deadline. For more on the EPBD, see our ICU Group’s briefing: How to get a Net-Zero Building Stock: Q&As on the Recast Energy Performance of Buildings Directive.

Housing standards

The Government will support local authorities to meet their annual target of inspecting 25% of private rented tenancies in their area to encourage compliance and raise awareness of housing rental standards.

Residential Zoned Land Tax (RZLT)

This tax remains in force with the Government stating its view that the objective of the tax is being met. The plan does not address the RZLT issue on forward funding transactions where a deferral based on work in progress is cancelled, obliging the vendor to pay the tax on completion. The legislation does not currently allow the deferral to be reinstated by the purchaser, even where contractors continue to work on site.

Derelict property tax (DPT)

The plan contains no further detail on the DPT (to replace the derelict sites levy). It confirms that the new tax will be administered by Revenue, with local authorities continuing to identify and register derelict properties. A new national digital derelict site register will be published annually, replacing local registers. Pending legislation, local authorities will increase derelict site registrations, enforcement and levy collection, and will use CPO powers where owners fail to engage.

Vacant homes tax

This tax will continue, alongside increased funding for the vacant property refurbishment grant to address vacancy and dereliction.

Compulsory land purchase

The plan recognises CPOs as an important tool to activate land for housing delivery (the current Programme for Government already promises to streamline CPO powers). The plan refers to the CPO Activation Programme launched in April 2023 which requires local authorities to identify vacant and derelict properties, and record activity and outcomes. The Government commits to publishing annual data on local authority progress and delivery.

Regulation of management companies

Consistent with the Programme for Government, responsibility for the Multi-Unit Development Acts will transfer to the Department of Housing, Local Government and Heritage to streamline support for owner management companies (OMCs) and enhance oversight. Once transferred, the Department will carry out a review of the Acts to strengthen the operation of management companies, which will be relevant to BTR/BTS and PBSA operations. The Joint Committee on Housing, Local Government and Heritage met on 14 October 2025 to discuss reform of the law in this area.

Building Standards Regulatory Authority

The plan confirms establishment of a Building Standards Regulatory Authority to strengthen State oversight of building design and construction and the marketing and use of construction products. A Building Standards Agency will be established under the Local Government (Corporate Bodies) Act, 1971 pending the new Authority. The heads of a Bill are in preparation according to the Government’s current legislation programme.

Title registration

Tailte Éireann will digitise and upgrade its systems to accelerate and improve land title registrations. Approximately 300,000 titles, mainly in Dublin and Cork, remain unregistered, which can cause conveyancing delays.

Comment

This new Housing Plan signals a clear intent to leverage private capital as a cornerstone of delivery, supported by targeted tax measures, structural reforms, and enhanced financing channels.

The underwriting of investment in BTR/PRS and PBSA will require primary legislation amending the Residential Tenancies Acts. While the Government has committed to the changes commencing on 1 March 2026, it is imperative that the draft legislation is published as early as possible in 2026. We understand that the Residential Tenancies (Amendment) Bill, that will implement the reforms announced by the Government in June 2025, will be published in the coming weeks.

Whilst the consolidation of these measures in one plan is welcome, most of the measures have been flagged previously. This is positive in that the Government is not coming from a standing start. However, as with all programmes of this scale, clear and consistent execution is paramount to materially move the dial. In particular, early engagement with market stakeholders across the investment, funding and development sectors will be critical to restore confidence and attract private capital back into the market.

The inaugural meeting of the Housing Activation Delivery and Industry Groups in November indicates an understanding on the Government’s part that, if this new Housing Plan is to work, Government departments, state and local authorities, utilities and industry bodies must work together hand in glove.

There is renewed confidence in the Irish market across all sectors. This is evidenced by increased deal activity in our real estate practice across several sectors including retail, logistics, development land and PRS, in particular. We have also seen an uptick in leasing activity in the last 12 months particularly in the office sector with several large office requirements coming to the market in 2026. With a stable investment environment, lower interest costs, a positive deal outlook and the further positive momentum generated by the publication of the Government’s Accelerating Infrastructure Report and Action Plan, there are many reasons to be confident that the Irish real estate market will shift gears in 2026.

For planning and infrastructure analysis of the plan, see our Environment and Planning Group briefing: Housing development: Update on government action plan for housing delivery.

Please contact a member of the Arthur Cox Real Estate Group or your usual Arthur Cox contact for more information.