Landlords threaten action over second home tax

LANDLORDS are threatening legal action over the introduction of a €200 tax on rental or holiday homes which the Government plans to impose as early as next month.

Mortgage advisers have warned the tax will lead to a further drop in house prices, while owners of the second homes claimed the new levy is a reintroduction of local authority rates.

The tax was initially announced last October but laws giving effect to it were formally published yesterday by Environment Minister John Gormley. It is expected to be passed in the Dáil before it breaks for summer holidays.