At a time when there seems to be an air of negativity around the Irish property market, the government has laid out plans to give landlords a well needed tax break in next month’s budget.
The tax breaks will form part of the 1 billion Euro cost of living package designed to stop landlords from leaving the sector.
In a recent report conducted by the property website daft.ie, it concluded that properties available for rent in Ireland were at an all time low, while prices in the second quarter of this year were 12.7% higher than that of the previous year within the same period.
Although these figures only pertain to data from the daft.ie platform, it’s yet again more evidence that something needs to be done.
The average rent in the capital is now just below €2,200 – up over 110% from its lowest point in 2011.
It’s a similar picture in rural area’s rents were averaging just over €1,600 throughout the second quarter of 2022.
What will the tax break mean to landlords?
Nothing has been set in stone as of yet, but it’s widely understood that ministers will meet in the coming weeks to implement a stimulus package whereby landlords will receive tax credits when committing to either a 5 or 10 year lease, the specifics however are yet to be confirmed.
But as avid rental concerns populate the media cycle , any move made by the government is likely to start separate debates and controversy,
as the Government is also seeking to exhaust all avenues to secure homes for more than 40,000 Ukrainian refugees.
During this turbulent time in the property market, with rising rents, high eviction levels and legislative changes to combat homelessness, there has never been a more prominent time to employ an experienced property manager to navigate the minefield that is the current housing market.
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