The Minister suggested that
private rents should be pegged legislatively to the cost of living and that the
private rental sector in Ireland was disorganised, unlike some other EU
countries.
But the suggestion was criticised by the IPOA. “Minister O’Sullivan appears to accept that Ireland is not like other countries in regard to the culture of renting, but she still would like to put a legislative noose on the free market,” said IPOA Chairman, Stephen Faughnan. “She drew a comparison with a number of countries, including Germany and France, which she said had an organised private rental sector. But the reality is that in Germany and France, taxation policies on rental income are much more benign than in Ireland.”
But the suggestion was criticised by the IPOA. “Minister O’Sullivan appears to accept that Ireland is not like other countries in regard to the culture of renting, but she still would like to put a legislative noose on the free market,” said IPOA Chairman, Stephen Faughnan. “She drew a comparison with a number of countries, including Germany and France, which she said had an organised private rental sector. But the reality is that in Germany and France, taxation policies on rental income are much more benign than in Ireland.”
A recent survey by the
International Union of Property Owners, to which the IPOA is affiliated, showed
that in France, rental income has tax rates of up to 45%, with the higher rate
only kicking in where net profit is over €150,000, compared top €32,800 in
Ireland. “Even Germany’s top rate of 45% does not come in until the net
profit is €250,730,” noted Mr. Faughnan. “An organised property sector,
as suggested by the Minister, requires a more benign Government and Revenue
policy so that landlords are able to properly earn their living in the same way
as any other business people. While the IPOA have reservations
about a rent cap at this point in time, I am pleased that Minister O’Sullivan
accepts the proposition that operating as a landlord is a business and should
be treated as such in Government tax policy.”
The IPOA also noted that
rent control, which was in place up to the early 1980s, was responsible for
much property dereliction at that time as landlords were unable to fund the
quite significant cost of renovation, which would never be recovered in a rent
control situation. “Do we want to return to the often squalid conditions
which then existed?” said Mr. Faughnan. “The abolition of rent control,
following a successful constitutional challenge, paved the way for
private rental property to be of significantly better quality, and allowed
landlords to earn a reasonable living from their letting business.”
He added: “Today’s landlord is not the same as yesterday’s. Most
landlords act responsibly in their obligations to tenants and need to be
treated fairly by the State as they are providing good quality homes for almost
a quarter of the population.”
The
IPOA spoke on Newstalk Radio at lunchtime today against the introduction of a
rental cap. Source IPOA
IRISH
EXAMINER -
Landlords hit out at minister’s plan to link private
rents to cost of living
An organisation
of landlords has raised concern over a proposal by Housing Minister Jan
O’Sullivan that a law be introduced to cap private rentals.
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