The Irish Property Owners’ Association say they are shocked, disappointed and saddened that the Government has not addressed the serious issues which they have repeatedly brought to the attention of government ministers.
They say the government have again reneged on their responsibility to curtail the loss of valuable accommodation for tenants.
In a note to members prepared just after the details of Budget 2023 were announced, IPOA Chair, Mary Conway said ….
“No meaningful attempt has been made to prevent the exodus of landlords from the market in spite of the State not providing homes for people. Over the years the Irish Property Owners’ Association has outlined the causes of these much-needed investors leaving the market, taxation over 50%, needless compliance, rent control, the abolition of the affordable bed-sit, and complicated legislation. All this has caused and will continue to cause homelessness and a shortage of affordable accommodation. Changing the tax treatment of landlords would have gone a long way towards encouraging landlords to remain in the sector and new entrants to invest.
”Tenants are our customers, and we want to facilitate their needs, but we are being pushed out of the market at a very high cost to the exchequer. Investment Funds have been given vast taxation breaks to supply the market with upmarket expensive accommodation and the traditional suppliers are being priced out. Remember the traditional suppliers are under severe rent control constraints and they supply some 265,000 homes when the Investment funds supply cr. 15,000.
”The State needs to put in place conditions to encourage investment, to retain existing accommodation and treat investors in the rental market in an equal fair manner, taxing letting property as a business. The exodus of small investors is likely to increase, and it will have a significant detrimental impact on the sector leading people with capital to invest their money in an alternative asset class.”
