Local Kilkenny estate agent responds to the budget
“The extension of the Help To Buy Incentive Scheme and reintroduction of the Rent Tax Credit is welcomed but it won’t stop the Flight of the Landlord”
Local estate agent Ciarán Dunphy of DNG Ella Dunphy has responded to the Government's property initiatives contained in Budget 2023.
"In respect of the Help To Buy Incentive Scheme, we very much welcome the announcement that the enhanced relief has been extended until the end of 2024, given the importance of the initiative in the current market, as the extension provides certainty to those first time buyers currently looking for a new home. Around 40% of our Buyers in Fox Meadow, Kilkenny have been utilizing the HTB scheme so it’s certainly a successful incentive that has caught the imagination of First Time Buyers.
"The reintroduced rent tax credit is also to be welcomed and will be of some assistance to renters struggling with high rents in the current market. The fact that a married couple can benefit up to €1,000 is particularly encouraging for struggling young families."
Ciarán continues: "We have to be critical of the budget also in that it has not done anything to encourage small to medium-sized landlords to stay in the market. By not committing to review the current taxation regime faced by small to medium-sized landlords in the market in this budget, the Government has missed a golden opportunity to stem their exodus from the rental sector. The failure to reduce the tax burden for landlords will mean many more will choose to exit the rental sector in the months ahead while the sales market is still strong, further reducing the amount of available stock.
He concludes: "In turn, this reduces stock and it is the tenant who ultimately suffers. It’s hard to state the obvious any further, but as long as there are far more tenants than there are properties available, rents will continue to stagnate or rise. More rental stock equals more choice for tenants which equals more power for them to achieve an affordable rent. A short/medium term temporary tax relief for landlords could resolve this and encourage new landlords to enter the market until it finds equilibrium again."