Latest news with #IrishPropertyOwners'Association
BreakingNews.ie
3 days ago
- Business
- BreakingNews.ie
'Urgent reformation' of property tax needed to revitalise market
The Irish Property Owners' Association (IPOA) has said there is an urgent reformation of property taxation needed in Budget 2026 to revitalise the property market. In its pre-budget submission for 2026, the IPOA proposed a number of practical measures to "level the playing field" for landlords and make the rental market more sustainable. Advertisement The association's key asks include: Taxing rental income the same as income to a trading business; Abolishing close company surcharge; Increasing the number of allowable claims under the Residential Property Rental Income Relief (RPRIR); Expanding the range of expenses for tax deductibility for landlords, including Local Property Tax. Despite the fact that many small landlords are dependent on rental income as their main income and business, business expenses in the rental industry are treated differently to other industries, the IPOA said. The association said changes such as affording landlords the same access to tax deductible expenses as sole traders and allowing Local Property Tax as a business expense would go a long way to rejuvenating viability of the market. The IPOA also backs a tiered relief system for RPRIR allowance that reflects the reality of the market. As of Q4 2024, 72% of all landlords had only one or two tenancies, and 79%, or 83,031 had 3 tenancies or fewer. As such, allowing the RPRIR credit to be claimed for up to two or three tenancies would provide a benefit for the vast majority of landlords, the IPOA said. Advertisement The IPOA is also calling for the Government to introduce a limited, trial-based investment scheme aimed at attracting individual investment into the rental sector, taking learnings from the overextension and unsuitability of previous tax relief schemes. Chair of the IPOA, Mary Conway, said: 'It is clear that radical changes are needed to stabilise the apprehension in external investment in the Irish property market and to accelerate progress in housing delivery. "As the national voice for private residential property owners, the Irish Property Owners' Association has a deep knowledge of the sector, and we believe that these proposals are urgently needed to inject fresh energy to the market. "With uncertainty, rising costs and inflation, it is imperative to reform taxation of landlords in recognition that letting of residential property is a legitimate and important business activity. Meaningful supports, incentives for investors, and fair tax treatment will go a long way towards stabilising the rental supply, and in turn, controlling rising rents."
The Journal
15-07-2025
- Business
- The Journal
New tenancy rules will have 'chilling effect on housing supply', IPOA to tell Housing Committee
NEWLY ANNOUNCED MEASURES by the Government to address the ongoing housing crisis will only stagnate the market and have a 'chilling effect on both housing supply and investor confidence', according to the national residential landlords' association. The Irish Property Owners' Association (IPOA) is to address the Housing Committee this afternoon. It will highlight its concerns regarding the impact on the rental sector of various measures recently announced. Advertisement In June, the Government announced its 'major reforms' that it would be implementing in an attempt to 'boost investment' to increase the housing supply. One of the most spoken about measures was the entire country falling under the umbrella of a Rent Pressure Zone – aside from new build apartments. Of the IPOA's concerns, it will particularly highlight the definition of a 'large landlord' as being unsuitable due to it being based on a landlord's tenancies rather than the number of properties owned. This, it will argue, will impact the most affordable rung on the property ladder: house shares. House shares are particularly common for students, recent graduates, and people on lower incomes. The IPOA will say that the classification of a landlord with four tenancies – which could potentially all be within one property – as a 'large landlord' and is therefore subject to different regulations will dissuade landlords from renting their properties to multiple separate people. The IPOA will also state its opposition to mandated tenant-in-situ sales. It will cite Property Market Intel research that states that selling with tenants in situ – with the new property owners essentially inheriting the tenancy agreement from the former landlord – reduces the value of a property by up to 40%. Related Reads House prices have jumped by up to 19% in some counties over the past year New rental regulations will allow landlords increase rents if previous tenant leaves voluntarily The most pressing issue, its spokesperson will say, is the restriction on who landlords can sell their properties to. It will flag massive drops in investment by landlords. It will also say that the Government is opening the door for economic evictions, as it may be more profitable for landlords to keep their properties vacant until the regulations kick in next March so that they can sell without tenants in situ. 'We now face a nine-month freeze until 1 March 2026,' its spokesperson will say in the opening address. 'The uncertainty faced by landlords, paired with the market restrictions, could have a chilling effect on both supply and investor confidence. 'It is not reasonable to expect private landlords to shoulder the responsibility for lifelong housing provision. That is the role of the Government.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
