Landlords will 'flee the market' if taxes aren't reduced, representative body warns

A group representing auctioneers have warned that a combination of high taxes and over-regulation are causing landlords to leave the market.

The Institute of Professional Auctioneers and Valuers (Ipav) cited figures from the Residential Tenancies Board that showed there are over 1,700 fewer landlords in Ireland in 2018 than three years earlier.

Ipav described this as the "tip of the iceberg" as they said they expect the number of landlords to drop again when the 2019 figures come out.

"This very much ties in with the experience of our members," Ipav's chief executive Pat Davitt said.

Mr Davitt said high taxes, excessive regulation and irresponsible tenants were the top reasons given by landlords for leaving the market.

“Many private landlords pay tax rates of 55% on rental income and are subject to stamp duty and capital gains taxes on sales," he explained.

“Yet commercial landlords in the build-to-rent sector pay little or no tax.

“Investment in the private rented sector has become a deeply unattractive proposition for the private landlord, despite record high rents,” he added.

Perceptions rather than reality often influence political debate and ultimately, policy.

Mr Davitt called on the government to improve the tax situation for landlords in the forthcoming Budget.

He also issued this warning if the situation, as far as landlords are concerned, is not improved on.

"We can expect more private landlords, who are the primary providers of accommodation for the less well off, to flee the market," he said.

In 2017, 895,600 people were living in rented accommodation in Ireland.