Brian Keegan: There are better ways to stem exodus of small landlords

Any new tax relief shouldn't make matters more complicated for smaller landlords

There is growing evidence of a genuine exodus of smaller investors from the rental market.

As the housing crisis deepens, it is hard to know what to make of reports in recent days that the Government is considering a new system of tax incentives for smaller private property investors. The suggestion is that as long as a landlord fits a certain profile, and charges rents below a particular threshold, some additional tax relief will be available to take rents out of the charge to income tax, at rates of as much as 52% when USC and PRSI are added in.

Proposing a new property tax relief represents quite a change of approach from official Ireland. Up until relatively recently, any suggestion or proposal to introduce tax relief for rental accommodation was dismissed out of hand. Excessive and extended tax reliefs did contribute to the 2008 property crash, but the world has changed and there is growing evidence of a genuine exodus of smaller investors from the rental market.