Property tax cap ‘will do very little’

A group representing mortgage holders has claimed the Government will simply be “playing about with the edges” of Ireland’s repossession and housing crises if it decides to introduce a property tax cap on homes.

Irish Mortgages Holders Association director David Hall issued the rebuttal 24 hours after Tánaiste Joan Burton said the move could be imposed by the coalition in the coming weeks.

Speaking at the Easter Sunday commemorations, the Labour leader confirmed a property tax cap is being considered to prevent an increase, due to rising property prices.

Ms Burton said the move may be particularly needed in urban areas as “for some people the valuations could rise very steeply”.

However, despite welcoming the potential policy as a step forward, Mr Hall said it amounts to just “playing about with the edges” with the repossession and housing crises.

Criticising the focus on property tax reforms instead of wider housing issues, he added a cap on the tax is “far down the list” of concerns of people struggling to pay off their mortgages and may help better off individuals more than those in real need.

“The property tax has no relevance to someone in mortgage difficulty. They have far more fundamental problems to deal with first.

“The Central Bank released figures last week which show 60,000 people are in danger of repossession this year, with 31,000 of them at serious risk of repossession.

“A property tax cap may be appealing for the wider public, but for these people it will do very little. That tax was meant to be a wealth tax, so a cap may benefit the rich more than people in difficulty,” he said.

The property tax was introduced in 2013 and is based on self-assessment by the owner of the value of a home.

While the payment level will remain static until the end of next year, rising prices mean an increase is likely at that point, placing further pressure on people struggling to keep up repayments on their home.

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