On Budget Day 2025, the government presented its fiscal plans for 2026 and beyond. Many of these measures have a direct impact on the housing market. Whether you’re a first-time buyer, investor, landlord, or owner, it’s important to know what’s changing.
We’ve compiled the most important Budget Day 2025 changes for the housing market.
1. Transfer Tax: Lower Rates for Non-Primary Residences
From January 1, 2026, the transfer tax will change:
▪ 8% for properties not used as primary residence (investors, landlords, property developers).
▪ 2% for properties you will live in yourself.
▪ 0% for first-time buyers who fall under the exemption threshold.
▪ For commercial properties and other non-residential properties, the rate remains 10.4%.
This change could be particularly interesting for investors and property developers.
2. First-Time Buyer Exemption Increased to €555,000
The threshold for first-time buyer exemption will rise to €555,000 in 2026.
▪ Applies to young buyers aged 18 to 35.
▪ Note: the date of transfer at the notary is decisive, not the purchase date.
This can make a significant difference when buying your first property.
3. Rental and Letting: More Flexibility
The following changes will affect the rental market:
▪ The planned rent freeze will not proceed.
▪ Lodger arrangements and house sharing will be encouraged.
▪ The Housing Valuation System (WWS) will be adjusted for more flexibility in mid-market rentals.
▪ Service charges will be more clearly defined.
▪ The Rent Tribunal will receive more options to resolve disputes faster.
4. Housing Allowance: Simpler and More Accessible
From 2026:
▪ Maximum rent limits will disappear, making more tenants eligible for housing allowance.
▪ The age limit will decrease from 23 to 21 years.
This can particularly help young tenants and students to find affordable housing.
5. Sustainability and Energy Labels
The government is strongly focusing on sustainability:
▪ From 2029, all rental properties must have at least energy label D.
▪ The National Heat Fund will continue to offer loans, sometimes even at 0% interest.
▪ Homeowners’ Associations will receive more support and simplified decision-making for sustainability improvements.
What Do the Budget Day Measures Mean for You?
▪ First-time buyers: benefit from a higher exemption threshold and lower transfer tax.
▪ Investors and landlords: lower transfer tax and more flexibility in mid-market rentals.
▪ Tenants: easier access to housing allowance and clearer rules regarding service charges.
▪ Owners and Homeowners’ Associations: more opportunities and support for sustainability improvements.
Conclusion
These plans were announced on Budget Day but still need approval from both Houses of Parliament. Stay informed, as this can directly affect your property, investment, or rental.
