Irish “caring” Budget re-introduces 100% mortgage interest tax relief

by Property 118

14:31 PM, 11th October 2018
About a month ago

Irish “caring” Budget re-introduces 100% mortgage interest tax relief

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Irish “caring” Budget re-introduces 100% mortgage interest tax relief

The Finance Minister for Ireland, Paschal Donohoe, described his budget as a “caring” budget that will secure Ireland’s future. Donohoe confirmed landlords would receive relief of up to 100% of the interest paid on loans for the purchase or refurbishment of residential property.

100% interest relief has been brought forward to come into effect on 1 January 2019 instead of the planned date of 2021. Currently only 80% of interest can be claimed as relief by Irish Landlords.

The Housing Minister, Eoghan Murphy, said this was decided to “incentivise landlords to remain as landlords”.

Predictably this was accused by opposition parties as “a landlords’ budget from a landlords’ government” and “an unnecessary tax relief to landlords who can buy a house for cheaper than a family”.

The Irish Times reported on the announcement saying: “The measure is seen as a step by the Government to encourage landlords to stay in the market, amid claims that high tax burdens were forcing them to sell up to owner-occupiers. It is also probably hoped that a more favourable tax bill will mean that landlords may hold back on rent increases, given the sharp upward momentum in the rental market.”

Savills Ireland director, John McCartney, predicted this would increase demand for apartments from investors adding “In turn this should underpin developer confidence and encourage further apartment building.” He did however warn that increased competition for properties from investors could also lead to an inflationary pressure of prices.



Comments

Monty Bodkin

15:56 PM, 11th October 2018
About a month ago

How long before our government reaches the same bleedin' obvious conclusion?

Larry Sweeney

16:04 PM, 11th October 2018
About a month ago

The Uk government way behind the Curve. The lawmakers with their rewriting of basic accountancy rules, stupid council licensing schemes have wrecked the PRS.
The New Landlords Alliance website launch next month will advise landlords to not engage with the government. The show is over this government has wrecked the PRS and the other clowns ranting about sect 21 want to force tenants to que for the few rentals that may remain.
As Monty said the answer is bleedin obvious.
1/Scrap sect 24 and bring the UK in to line with accounting standards worldwide.
2/Disband the so called Housing Charity with the £60 million budget that houses nobody. Use that money for building.
3/Scrap the Selective licensing schemes which are forcing rents up.
Finally bin the 14 Billion yes 14 Billion overseas aid budget.
Take these measures and in one go, the housing crisis is solved. This is simple.
Over to you Mr Brokenshire

Robert Mellors

22:22 PM, 11th October 2018
About a month ago

Reply to the comment left by Larry Sweeney at 11/10/2018 - 16:04There are many aspects of Government spending (and other actions) which I personally may not agree with, but I'm not sure what the foreign aid budget has got to do with landlords?, or whether the various landlord members of the new Landlord Alliance would wish to lobby government about the foreign aid budget when it is has so little to do with the issues affecting PRS landlords?

In relation to the re-introduction of the 100% mortgage interest relief, this does sound like a positive step that will help landlords and tenants in Ireland. - I hope that the UK government will follow this example and help landlords to help tenants and reduce homelessness.

Larry Sweeney

22:47 PM, 11th October 2018
About a month ago

Robert Have you pledged membership. If so email me and I would be more than happy to address some points which you have raised. It would not be our policy to explain the rationale behind every post on a public forum.

Robert Mellors

0:23 AM, 12th October 2018
About a month ago

Reply to the comment left by Larry Sweeney at 11/10/2018 - 22:47Hi Larry, yes I have pledged membership (on your p118 post asking for pledges), and I have also already emailed you direct with my pledge.
However, as yet I've received no details as to what specific remit your NLA will have, so it is worrying that it seems to be "going off on a tangent" by campaigning (perhaps not the right word) for Council Tax holidays for new home owners, and ending of Foreign Aid Budgets, neither of which seem very relevant to standing up for the rights of landlords, and appear to be leading towards a different political agenda.
This does not alter the fact that you have done, and are doing, some great work for landlords, and much of what you are proposing for the NLA sounds good, I'm just concerned about the things you are proposing that do not appear to be directly related to the PRS landlords.
You are welcome to contact me direct at robert.mellors@choicehousingltd.org, or connect with me on Linked In (where you can also view some articles I have written about housing and homelessness, if you wish).

Grumpy Doug

12:10 PM, 12th October 2018
About a month ago

Coincidentally, Roddy Doyle (The Commitments, The Snapper and Family) has released Rosie, a film depicting Ireland's homeless crisis.
See Guardian story https://www.theguardian.com/world/2018/oct/11/roddy-doyle-depicts-irelands-homeless-crisis-in-new-film-rosie
It's a pity that the Guardian article doesn't allow comments on this one - would have been an opportune moment to "join the dots", and in true Guardian style, they do not explore why evictions are taking place or why landlords are selling up. However it would appear that the Irish politicians have started to join the dots - pity that the muppets running the show over here can't do likewise. Never mind - my MP will get a reminder ...... again !!

Dilep Singh

14:19 PM, 12th October 2018
About a month ago

I think this is a perfect opportunity to make our own politicians realize by working with us instead of against us, they'll get the tenants and landlords votes they're so eager for!!
Happy tenants = happy landlords = better/more investments = better revenues!! Quite simple isn't it?

John Walker

17:14 PM, 12th October 2018
About a month ago

I agree with Larry on most things he has set out to do, but must take exception to his comments on the overseas aid budget. There are millions of people in the world who are far worse off than the vast majority of landlords and their tenants, and I for one am prepared to have my tax contributions used to support them, usually in their hour of desperate need. I have also pledged my contribution to the NLA.

Arnie Newington

7:32 AM, 13th October 2018
About a month ago

Section 24 was introduced in Ireland and led to rent increases.

Banning letting agent fees was introduced in Scotland and led to rent increases.

Why are the government wasting time and effort introducing policies that have failed elsewhere.

The PRS was the only part of the housing sector that worked well for tenants and now it is becoming unaffordable due to terrible policy decisions.

Jim S

13:13 PM, 13th October 2018
About a month ago

I read about the Irish reintroducing 100% tax relief for interest finance costs on one of the property blog websites (Can't remember which now), it also stated that the Irish Government do not intend to offer this tax relief to those landlords on low rate tracker mortgages "As they are already getting a financial advantage" How absolutely appalling that they would discriminate like this against a landlord that had made a good commercial decision many years ago.
That to me is a dirty way of doing business and I would expect no less from the British Government if they were to reconsider Section 24

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