Property prices to go up – but tax may drop

by Emma Nolan
Property prices look set to rise nationally by 7% this year, but the local property tax could be lowered if Leo Varadkar’s proposals are adopted

Property prices in Dublin are to continue to increase over the next three years – but homeowners in the capital could be in line for lower rates of the property tax.
According to a survey of property professionals, national house prices are set to rise by 7% this year, and by 15% in the next three years.
The joint study carried out by the Society of Chartered Surveyors Ireland (SCSI) and the Central Bank of Ireland found that the number of buy-to-let properties coming onto the market is likely to rise in the immediate future.
The lack of adequate levels of housing supply is one of the most influential factors attributed to house price inflation in Dublin and elsewhere.
According to the report, respondents in the Dublin region indicated that the introduction of recent rent restrictions was the biggest reason for a withdrawal of investors.
The lack of new builds was the top factor influencing house price inflation, which is also impacting on the supply of adequate numbers of secondhand stock for the market.
Speaking on the report’s findings, estate agent Eamonn Gavigan said that there are no quick-fix solutions to the lack of supply.
He said: “With such a high rate of respondents to the survey predicting house price inflation for the next three years, this is a clear sign that the supply and demand imbalance in the market is likely to continue for some time.
“Until such time that new units are brought to the market, demand for both renting and purchasing property will remain high.”
Meanwhile, news emerged this week that Dublin homeowners could be in line for lower property tax bills.
Minister Leo Varadkar said he wants to change how the property tax is collected and distributed.
The Minister for Social Protection said councils should be allowed to vary the tax rate by more than the 15% currently allowed.
The move would either cut bills or protect homeowners from large tax hikes when homes are revalued in 2019.
According to Minister Varadkar, the revaluation of properties will result in people living in areas with rising property prices being hit with higher bills. Allowing councils to vary the rate would protect homeowners, he said.

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