State’s tax treatment of landlords to blame for rented shrinking sector

Recent reports highlight the amount of rent that is being asked for new letting. However, most tenancies have been in place for a considerable time and most landlords have not increased their rents to market level.

State’s tax treatment of landlords to blame for rented shrinking sector

Landlords in general appreciate good tenants, and show their appreciation by keeping their rents below market level.

The fundamental difficulty in the sector is the tax treatment. The Irish State take approximately 60% of rent in taxes and State treatment charges. It is the State that mainly benefits from increased rents, which may be the reason that the State has not addressed the issue. However, tax treatment is driving many landlords from the sector and the loser are tenants. For every two investment properties sold only one is returning, Landlords are selling investment properties because it is not sustainable to keep them and the private rental sector is at a loss going forward. We ask the new minister to review the Housing Standards to allow for the letting of bedsits with designated bathrooms solely for the use of the unit. This would allow for some people currently in hostels to have homes. There is a large amount of housing stock lying idle and no one has tackled the matter. Local authorities must join with property owners and put initiatives in place to facilitate the refurbishment of empty properties which would increase the supply of rental accommodation considerably.

Stephen Faughnan

Chairman Irish Property Owners’ Association The National Landlords’ Representative Organisation

Ashtown Business Centre

Dublin 15

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