Harsh tax laws harming Irish rental market
An Irish property expert has argued that increased costs imposed by the government are damaging the private rental market. Stephen Faughnan, Chairman of the Irish Property Owners&rsquo; Association, has claimed that 30% of landlords intend to sell their properties as a result of harsh tax laws leaving them unable to continue letting. Faughnan also added that since the outlaw of traditional bedsit rentals, potential tenants are experiencing a lack of available accommodation.
The Chairman of the Irish Property Owners’ Association, Stephen Faughnan, yesterday claimed that increased costs levied by the State are putting the private rental market under pressure and tenants are suffering.



He claimed that commercial investors are treated more favourably in tax law than residential investors.

Furthermore, Faughnan claims that statistics available to the Irish Property Owners’ Association also indicate that 30% of landlords in the sector intend to sell as soon as they can.



Faughnan commented, "70% of landlords have loans and 71% of them have insufficient income from their rental property to cover the mortgage repayment. This is an appalling statistic and unsustainable."



He added, "Traditional bedsits have been outlawed, reducing the number of homes available. It is now illegal to let a bedsit with a designated bathroom, solely for the unit, outside the door of the unit.

"It is unconscionable that the Government forced the closure of these properties without putting alternative accommodation in place. A stroke of a pen by the Minister can change this situation and immediately increase the amount of accommodation available."

Source: www.businessworld.ie