How Budget 2026 Will Shape the Irish Property Market
The key changes Budget 2026 brings to Ireland’s housing market
Ireland’s Budget 2026, released in October, has set the tone for what many experts predict will be a defining year for the property market. With a blend of supports for buyers, incentives for landlords, and renewed investment in housing, the new budget signals both stability and gradual transformation for Ireland’s housing landscape.
Below, we look at what Budget 2026 means for property prices, rental supply, first-time buyers, and anyone planning to sell or buy a home in 2026.
A Budget Focused on Housing Stability
Housing has once again taken centre stage. While previous budgets were dominated by emergency responses to inflation and interest rate pressures, Budget 2026 introduces a more measured, long-term approach. The government is clearly targeting three outcomes:
- More supply
- More affordability
- More stability in the rental market
These goals are reflected across several initiatives affecting homebuyers, sellers, landlords, and investors. More info.
Help-to-Buy Extended — A Boost for First-Time Buyers
One of the most anticipated announcements was the extension of the Help-to-Buy scheme until the end of 2027. First-time buyers can continue to claim up to €30,000 in tax relief when purchasing a new-build home. Click here for more information.
This move is set to maintain strong demand for new homes, particularly in high-growth commuter areas such as Lucan, Celbridge, Leixlip, Maynooth, and Kildare, where new developments remain highly competitive. For buyers, it brings certainty. For sellers of A-rated homes, it signals continuing buyer interest and strong viewing activity.
Mortgage Interest Relief Returns in Targeted Form
With rising interest rates still weighing on household budgets, Budget 2026 introduces targeted mortgage interest relief. Households within certain mortgage bands will receive partial tax relief to offset increased repayment costs.
While not a universal benefit, it offers welcome breathing room for many homeowners and may encourage more confident decision-making among those considering trading up or downsizing in 2026.
New Incentives Aim to Keep Landlords in the Market
After years of landlords leaving the rental sector, the government has shifted gears. Budget 2026 offers a package designed to retain existing landlords and encourage long-term investment, including:
- Additional tax relief on rental income
- Reduced tax rates up to a defined threshold
- Extended Capital Gains Tax relief for landlords selling after 7+ years of ownership
These measures signal a clear intention to stabilise rental supply. Rather than watching landlords exit the market, policymakers are now incentivising them to stay — a welcome step in calming pressure on rents.
More Investment in Social, Affordable & Cost-Rental Housing
Budget 2026 allocates further funding to:
- Affordable Purchase schemes
- Local Authority housebuilding
- Cost-rental housing
- HAP and RAS supports
Although these developments take time to materialise, they demonstrate ongoing government commitment to long-term housing supply and affordable pathways to home ownership.
What This Means for Buyers in 2026
For buyers, especially first-time buyers, Budget 2026 offers reassurance rather than sudden change. The extension of HTB and new supports means more affordability and more motivation to enter the market.
However, the impact on supply will vary. While new affordable housing will roll out slowly, demand for well-located homes — especially in areas like Lucan, Celbridge, and Kildare towns — is expected to remain strong. Buyers will continue to face competitive conditions, particularly for A-rated, turnkey homes.
What This Means for Sellers in 2026
For homeowners planning to sell in 2026, the market remains in their favour. Demand continues to outstrip supply in many areas, and Budget 2026 supports that trend.
Sellers of energy-efficient homes or properties close to transport links, schools, or town centres are likely to experience:
- Strong buyer activity
- Steady price growth
- Faster sales timelines
With affordability measures encouraging more buyers into the market, 2026 could be another active year for vendors.
What This Means for Landlords & Investors
The biggest shift lies in the rental market. After years of taxation and regulation pushing landlords out, Budget 2026 offers meaningful incentives for them to stay.
Landlords will benefit from:
- Higher allowable deductions
- Reduced tax on rental income
- Long-term CGT relief
This could slow the rate of investor sell-offs and provide greater stability for tenants. Investors purchasing new rental properties, or upgrading existing ones, may find improved long-term returns as the market balances.
Will Property Prices Rise or Fall After Budget 2026?
Economists expect the Irish property market in 2026 to remain broadly stable, with slight upward pressure on prices in certain areas. With Help-to-Buy extended and mortgage relief available, demand should remain steady. Meanwhile, landlord incentives reduce the risk of sudden drops in rental supply.
In commuter areas — particularly Lucan, Celbridge, Maynooth, Leixlip, and Kildare — price growth will likely continue, driven by strong buyer demand and limited supply of high-quality homes.
The Big Picture: A Market Moving Toward Stability
Budget 2026 isn’t dramatic — and that’s precisely what the market needs. Rather than sweeping changes, it delivers steady, strategic measures that support long-term housing availability and affordability.
For buyers, sellers, and landlords alike, 2026 is shaping up to be a year defined by confidence and clarity, not volatility.