The Department of Housing, Local Government and Heritage has been allocated a record €11.275 billion in Budget 2026, marking a 20% overall increase in funding. This unprecedented package aims to boost housing supply, support local government, enhance planning, and conserve Ireland’s natural and built heritage. Housing capital investment alone exceeds €9 billion, reflecting the government’s commitment to delivering more homes, tackling homelessness, and ensuring access to affordable housing across all tenures.
Budget 2026 provides €7.21 billion in exchequer funding for housing, including €5.19 billion in capital funding, which, when complemented by investment from the Land Development Agency and Housing Finance Agency, brings total housing capital to over €9 billion. This investment supports social housing, affordable purchase, and cost rental schemes, with allocations including €2.9 billion for the delivery of 10,200 new social homes and €1.2 billion for 7,500 affordable and cost rental homes. In addition, more than €570 million will support households in the private rental sector through schemes such as the Housing Assistance Payment and Rental Accommodation Scheme. The rent tax credit of €1,000 has also been extended for three years, providing further support to renters.
Significant funding is dedicated to homelessness services, with an enhanced allocation of €563 million to cover emergency accommodation, tenancy sustainment, transitional housing, and prevention initiatives. Housing adaptation grants for older people and those with disabilities receive €130 million, while €28.5 million supports adaptations in existing social homes. Further measures to tackle vacancy and dereliction include €165 million for the Vacant Property Refurbishment Grant, the introduction of a new Derelict Property Tax, and the extension of the Living City Initiative to 2030.
Investment in Uisce Éireann and water services has increased by 29% to €2.2 billion, facilitating housing development through the delivery of critical water infrastructure. A total of €2.5 billion is allocated for major projects, including the Water Supply Project and Greater Dublin Drainage project, ensuring improved water services nationwide.
The planning sector will receive more than €400 million in 2026, including €300 million for the Urban Regeneration and Development Fund, supporting sustainable urban development and revitalization of towns and cities. Additional staff resources are provided to An Coimisiún Pleanála and local planning authorities to implement reforms under the Planning and Development Act 2024.
Local government funding totals €801.7 million, an increase of €117.65 million, supporting pay and pensions, equalization payments, infrastructure improvements, fire service development, and modernization of electoral processes. Budget 2026 also strengthens local governance, diversity, and citizen engagement through targeted reforms and investment in the Local Democracy Taskforce.
A record €256 million is allocated for nature, heritage, and biodiversity, representing a 15% increase, with the National Parks and Wildlife Service receiving over €100 million for the first time. The funding supports the Nature Restoration Plan, Heritage Ireland 2030, National Monuments Service, Community Monuments Fund, Built Heritage Investment Scheme, and other initiatives to conserve Ireland’s natural and built environment. Additional resources are earmarked for the Heritage Council and the National Biodiversity Data Centre to strengthen heritage protection and community engagement.
Overall, Budget 2026 positions the Department to deliver record levels of housing, enhanced local government services, responsive planning, and ambitious environmental and heritage conservation programs, reflecting the government’s commitment to sustainable development and inclusive growth across Ireland.
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