Higher tax relief for landlords in rental market
Significant tax reliefs for landlords and longer leases for tenants are part of a radical new Government policy document (http://www.per.gov.ie/wp-content/uploads/Social-Housing-Supports-Cross-Cutting-Paper-CRE.pdf) to give the rental market its biggest overhaul in a generation.
• An estimated one-in-five households (305,000) are now renting.
• An end to the practice of ejecting tenants when a property is being sold.
• It stresses that an effective solution to Ireland’s rental shortages requires “breaking free of the current debate . . . in which some argue for rent control and others counter with the need to create better incentives to keep existing landlords in the sector and encourage developers and investors to resume construction and supply
• Rules to prevent landlords from ejecting tenants when they plan to sell the property. Tenants would thus “accompany” the property in a sale, as they typically do in the commercial property sector.
• Longer leases, which should mirror European models to 10 or 20 years – as opposed to a maximum of four years and nine months, the maximum to which that an Irish residential tenant is currently entitled.
• It’s suggests providing residential landlords with full mortgage interest relief. At present they can claim 75pc as opposed to 100pc for a commercial property landlord.
Landlords need to be up to speed on the latest legislation to avail of all the reliefs and indeed to protect themselves from bad tenants. Contact Patrick O’Rourke on patrick.orourke@okellysutton .com or call 045 530777