Budget Day 2025: what does it mean for tenants?

On Budget Day, the government once again presented the Budget Memorandum and State Budget. This year, the main focus was on measures to give tenants more financial leeway and increase the supply of affordable rental housing.

At vb&t, we follow these developments closely. We list the main points for tenants for you.

Expansion of rent allowance

An important decision is that more tenants will be entitled to rent allowance. From 2026, the allowance will also apply to households with a rent from €900.07 per month. This is expected to make around 170,000 additional households eligible for support. This means that tenants who previously just missed out will also benefit from a lower net rent.

Contribution for low incomes

For tenants with a lower income who currently receive no rent subsidy, but do pay a high rent, there will be an additional scheme. They can count on a contribution to their rent costs. With this, the government aims to further alleviate the housing costs of vulnerable households.

More affordable rental housing

To reduce the pressure on the housing market, the government will make more than €900 million available for housing construction from 2026. This will focus on affordable rental housing up to €1,184.83 per month. This offers prospects for house seekers who are currently struggling to find suitable rental housing.

Tax measures that help tenants

Besides the rental measures, the government is lowering the rate in the first tax bracket. This will leave low- and middle-income workers with more net income. Combined with higher tax credits, this creates extra financial space in tenants' wallets.

Want to know more about Budget Day 2025 and the National Budget? Then visit the website of the central government.