Further to our recent webinar, Revenue have addressed a number of queries in the below linked FAQ document specifically relating to the new tax legislation surrounding non-resident landlords that came into effect on 1st July. Also linked below is a comprehensive Revenue  document regarding this matter.  We would like to take this opportunity to thank Shay O’Brien, Edel Butler and Brian Farrell for taking part in the webinar and for the advice provided. Queries not contained within the below documents can be emailed to info_NLWT@revenue.ie
Link:New Tax Legislation Surrounding Non-Resident Landlord FAQ

Link:Revenue/Non-resident Landlord Withholding Tax/Part 45-01-04A

Members advise IPAV, that presently the biggest problem with property sales is Conveyancing. IPAV wants to change that, and the Seller’s Legal Pack, prior to a property going on the market, is the change all agents need.

IPAV is now delighted to inform members that our Seller’s Legal Pack for Property Buyers Bill will be heard at Second Stage in Dáil Éireann on the 28th of September next. On that day, sponsor of our Bill, deputy Marc MacSharry will get the opportunity to introduce the legislation and its provisions to the members of the Dáil in an attempt to gain their support. While this is significant progress in our quest to have the current conveyancing process reformed, it is crucial that members encourage TDs in their constituency to support deputy MacSharry’s debate and accordingly vote in favour of this seminal legislation.

The Bill, explanatory memorandum & transcript of the first reading are available from the Oireachtas website at: www.oireachtas.ie/en/bills/bill/2021

The latest MyHome.ie Property Report for Q2 2023 was released this morning and shows that annual asking price inflation is running at 2.2% nationally with homes now being sold for 1.4% over asking price versus 5-6% this time last year.

The key findings of the report are as follows:

• Annual asking price inflation running at 2.2% nationally
• Homes now being sold for 1.4% over asking price versus 5-6% this time last year
• Demand remains particularly strong, with the value of mortgage approvals at record levels and average time to sale agreed close to historic lows
• Supply an ongoing issue, with 6,000 fewer properties on MyHome.ie compared with pre-pandemic levels
• Housing starts compare favourably with the same period in 2022, with an increase in activity almost entirely reflecting Dublin apartment construction
• Central Bank’s new lending rules for first-time buyers, ongoing Government supports and continued robust demand mean Ireland compares favourably to other markets such as the UK despite interest rate hikes

Renters will have the right to tenancies of “unlimited” duration under new draft laws from Minister for Housing Darragh O’Brien.

The laws are part of a package of measures that includes a 2% cap on annual rent increases in designated pressure zones and aims to “significantly” reduce rent increases.

Indefinite tenancies will come into force six months after enactment and on new tenancies settled after that point. This will give renters the right to a lease with a total duration of six years.

The grounds for termination include landlords having the right to end tenancies if they need the property for their own use or for a family member.

They can also end tenancies if they plan to change the business use of a property, or refurbish it substantially, or if they intend to sell it within nine months.

Read full article: IrishTimes.com

Returns for around 23% of properties liable to the Local Property Tax (LPT) have not yet been made. Revenue received LPT returns for 1.5 million properties, representing 77% of the expected numbers.

A detailed breakdown shows that almost 32% of property owners valued their property at €0-€200,000. A further 22% declared their property is worth between €200,001 and €262,500.

20% submitted a valuation of between €262,501 and €350,000 for their property, while almost 11% said their property fell into the €350,001-€437,500 band.

€107m has already been paid for 2022.

Revenue continues to process some returns and has reassured property owners that they will be treated as having complied with their LPT obligations on time.

Read full article: RTE.ie

Residential property prices rose by 12.4% nationwide in the year to September, according to an update from the Central Statistics Office.

In Dublin, residential property prices saw an increase of 11.5%, house prices increase by 12.4% and apartment prices increase by 7.7%.

Outside the capital, property prices were 13.2% higher, house prices were up by 13% and apartment prices rose by 15.1%.

Trevor Grant of the Association of Irish Mortgage Advisors said both rents and property prices are rising “month in, month out.”

Read full article: BreakingNews.ie

Homeowners have been warned Revenue officials are likely to challenge them if they attempt to undervalue their homes for the property tax.

1.4 million letters started arriving in homes from Revenue telling people to self-assess the value of their homes on November 1, submit the details by November 7, and either pay at that stage in a lump sum or indicate what alternative payment option will be used.

Revenue has warned that sheds, home offices, garages, greenhouses, garden rooms, and more than one acre of land (unless it is a farm), will all have to be included in the valuation.

Next year an extra 100,000 homes will be subject to the tax. Those who bought new builds, and others who had exemptions for the likes of pyrite damage in Leinster, are no longer exempt.

Even those who have paid the tax every year since 2013 have to put in a new valuation and submit a new return.

A Revenue spokesperson said the letters sent out include an estimated valuation of properties. ‘If there is a concern about a self-assessed valuation made by a property owner, Revenue will ask the owner to support his or her valuation with evidence of the information sources,’ which will be reviewed.

Read full article: Independent.ie

Tánaiste Leo Varadkar has said the ‘Help to Buy’ scheme will remain in place for a little longer and that there will be an announcement on this on Budget Day.

Mr Varadkar said increases in house prices are unwelcome for those trying to buy, but that the Government’s ‘Housing for All’ initiative will see a ramp-up in investment in social housing.

His comments come as two separate reports found that asking prices for homes in the third quarter were up 9% across the country compared to the same period in 2020.

Meanwhile, IPAV’s chief executive Pat Davitt said agents around the country are now reporting more second hand properties coming to the market. The low interest rates and fixed interest rates with longer terms are encouraging more people to get on the property ladder.

He said as long as stock is in short supply and money to buy is available, there will be competition in the market and prices will continue to rise.

Read full article: RTE.ie

Workers are still looking to move away from the cities despite the easing of Covid restrictions and the return of office life. This trend is now snowballing rather than slackening off.

Regional and town property prices have been increasing twice as fast as those in cities. The Average House Price Index report shows that the price of an average 3-bed semi-­detached home has risen a massive €3,500 a month since the end of June.

The biggest price rises came in commuter counties and bigger towns in anticipation of remote working. Price increases in Dublin, Cork, Limerick and Galway cities ranged much lower as a result, from 1.5% to 2.4%.

The race for larger homes for less money in high-­amenity locations has intensified in towns like Nenagh, where 3-bed semis that previously fetched €190,000 have sold for €235,000 – an increase of €45,000.

“The effect is being felt nationwide with counties such as Tipperary (9.2%), Donegal (8.4%) and Kilkenny (7.3%) all experiencing sharp rises in Q3 as buyers seek value locations,” said REA spokesperson Barry McDonald.

Read full article: Independent.ie

National Asset Management Agency (Nama) chief executive Brendan McDonagh is due to tell the Public Accounts Committee (PAC) that the agency can only finance developments where it expects to make money. 

He will point out commercial viability is becoming more “challenging” across the sector. “Soaring construction costs… are all putting upward pressure on the cost of delivering housing in Ireland.”

Nama cannot prevent cuckoo funds from buying up apartment blocks or other residential units put up for sale as it is legally bound to achieve the top price for properties.

Mr McDonagh will tell TDs and senators that delivery of 2,400 homes that have received planning permission will be “extremely challenging”.

The “vast majority” of Nama-funded newly built residential units are sold to individual purchasers, many of them first-time buyers.

Read full article: IrishExaminer.com