Tánaiste Leo Varadkar has backed calls for landlord tax breaks in the forthcoming Budget to prevent a further exodus from the market.

The Fine Gael leader confirmed that tax incentives for landlords will be under consideration ahead of next month's Budget.

It comes after 5,599 landlords left the market in the last year, with the rate of those selling up doubling compared to 2021.

Mr Varadkar said tax breaks to halt the exit would be a "good idea", adding that a lot of people were "losing their homes" due to landlords selling their rental properties.

The Enterprise Minister also said that if landlords were to receive tax breaks, renters should also receive some assistance in the Budget.

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He said: "Another thing we need to look at as well over the course of the next few months, either for the Budget or beyond, is what we can do to reduce the speed at which landlords are leaving the sector.

"I know it may not be popular to say so, but the truth is more and more landlords are just selling up and have decided it's easier to sell their property than to continue to rent it and we just need to reflect on that and see what we can do to improve things."

He said that no measures had been agreed ahead of the Budget, which will take place on September 27.

He added: "I do think that if there are any significant income tax or tax concessions for landlords in the Budget, then there should be for renters as well.

"It wouldn't be fair to say that we're going to give tax concessions to landlords in order to keep them renting, which would be a good thing. But then to say to renters there's nothing for them, that wouldn't be fair but, like I say, we haven't worked out or agreed any proposals in relation to that for the budget as yet." Mr Varadkar made the comments after the latest report by Daft.ie revealed that the number of homes available to rent dropped to an all-time low, while rent prices reached their highest level.

At the start of August, there were just 716 homes to rent compared to almost 2,500 at the same time last year.

Meanwhile, rents in the second quarter of this year were found to be on average 12.6% higher than in the 12 months previous.

The Tánaiste said that while the Daft.ie report was not an "official statistic", it is "undeniable" that people are having difficulty finding homes to rent and that rents are very high.