BUDGET WILL HELP TO RESTORE CONFIDENCE IN PROPERTY INDUSTRY – AUCTIONEER

A number of incentives contained in Budget 2012 should help rebuild confidence in the property industry, according to the Institute of Professional Auctioneers and Valuers (IPAV).

In particular, IPAV Chief Executive Fintan McNamara welcomed the increase in mortgage interest relief for first-time buyers from 15% to 25% and for non first-time buyers from 10% to 15%.

He also said the removal of Capital Gains Tax for property purchased between midnight last night (Tues) and the end of 2013 would provide an additional incentive to would-be investors who provide valuable accommodation to tenants who would otherwise be on local authority housing lists.

However, he cautioned that the Budget incentives would only work if they were accompanied by the freeing up of capital by the lending institutions.

“Unless the Government’s announcements are matched by immediate and real actions by the banks in providing credit, they will prove of very little value,” he said. “I am now calling on the Government to insist that the banks follow up on the incentives announced.”

Mr McNamara said the reduction in the rate of Stamp Duty for commercial property transfers  from 6% to a flat rate of 2% should help to provide an incentive to this market which has been languishing for the past three years.

Mr McNamara expressed concern at the additional imposition of the new €100 household levy on all non-principal private residences which are already subject to a €200 levy.

“The size of this levy on any particular building needs to be capped as a matter of urgency as otherwise it will continue to drive investors out of the market,” he added.