“In the rental sector, Mr Donohoe is bringing forward the full removal of the restriction on the amount of interest that may be deducted by landlords in respect of loans used to purchase, improve or repair their residential property. The rate was due to be 100 per cent by 2021 but will now be effective from 1 January 2019.”
The national representative body for private landlords, the Irish Property Owners Association (IPOA) have cautiously welcomed Budget 2019.
In a message to members shortly after the details were announced, IPOA Chairman, Stephen Faughnan, said that the restoration of mortgage interest relief to 100% as of 1st January 2019 was “a small start” on the long road of encouraging private landlords to either stay, or invest further, in the sector. “We have repeatedly told the Government that providing private rental property is a business,” says IPOA Chairman, Stephen Faughnan. “Like every normal business, landlords have to cover costs and make it worthwhile to continue. I hope this small start will represent a real decision to make it possible for landlords to continue playing a full part in providing quality and affordable accommodation to the 20% of the population living in rental properties.”
Mr Faughnan also expressed the hope that the Government will now begin to address other relevant issues including USC charged on gross income, acceptance of the Local Property Tax as an expense for rental properties, the complexity of landlord/tenant legislation, lack of protection during lengthy legal processes, and the inability to write-off other legitimate business costs from gross income.
“Private landlords are part of the solution to the housing crisis,” he said, “and they are willing to play their part as real partners. But they cannot continue to be the fall guys for inadequate Government action. They want to be in the business for the long haul, but the next step is up to the Government.”
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