herald

Thursday 2 October 2014

Landlords will force property hikes on tenants

Tenants are facing a hike in rents as tax-pressed landlords pass on a two-fold hit from the Budget.

In addition to the new property tax, landlords will now have to pay PRSI on the income from rents, a combination of taxes they say could put some of them out of business.

Finola McDonnell, director of Property Industry Ireland, argues strongly that occupiers and not landlords should pay the new property tax directly.



REPOSSESSIONS

James Nugent, managing director of Lisney Chartered Surveyors warned: "This tax combined with rental income falling into the PRSI net from next year will push many landlords into further distress and will lead to repossessions".

He also says the new measures will "further deplete an already inadequate stock of rental accommodation, particularly in cities.

"This could be a particular problem for international workers who generally prefer to rent, and could lead to international companies choosing alternative European locations."

Landlords next year will still have to pay the €200 charge for non principal private residences (NPPR) on every rental property in addition to property tax for the second half of the year at the rate of 0.18pc.

On top of this they must pay a 4pc PRSI charge on all rental income from January. The combination of taxes on landlords are expected to force more landlords to sell off properties.

Property tax will cost landlords -- like all other home owners -- upwards of €315 a year depending on the value of the premises.

hnews@herald.ie

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