The Irish Property Owners’ Association has responded to the recent Budget 2022 announcement noting its disillusion and disappointment that the Government has not addressed the serious issues which the association has repeatedly brought to the Government's attention.
In a note to members prepared just after the details of Budget 2022 were announced, IPOA chairman Stephen Faughnan said that neither the Government nor opposition has grasped the nettle which is causing the exit of thousands of property owners from the market.
"Over the years the Irish Property Owners’ Association has outlined the causes of these much-needed investors leaving the market, taxation over 50 per cent, needless compliance, rent control, the abolition of the affordable bedsit, and complicated legislation.
"All this has caused and will continue to cause homelessness and a shortage of affordable accommodation. Allowing all legitimate expenses to be offset in the year they occur would go 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 300,000 homes when the investment funds supply c10,000.
"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," Mr Faughnan asserted.
