Landlords to get new tax relief in rental shake-up
Published 13/05/2015 | 02:30
Tenants are to be offered greater certainty with Continental-style leases of up to 20 years as part of a radical shake-up of the rental market.
A new Government policy document also considers significant tax reliefs for landlords, as well as an end to the practice of ejecting tenants when a property is being sold.
The report, by the National Economic and Social Council, represents the outline of a new national policy for the private rental sector. It is now being put to Government. An estimated one-in-five households in Ireland (305,000) are renting and the report acknowledges that a third of people are unlikely to be able to purchase a home in the future. But several radical new proposals are being put forward to shake up the Irish rental sector and ease the accommodation crisis. The report was reviewed by Cabinet yesterday.
It stresses an effective solution to the rental shortage requires measures to help both landlords and tenants as "neither approach on its own will be effective".
Meanwhile, the Government is expected to hold a special Cabinet meeting today to sign-off on a mortgage-arrears package.
In what amounts to a major U-turn, ministers are due to agree to a change that will see banks effectively losing their veto over insolvency deals.
The Government fears a massive spike in repossessions if it does not act. Close to 38,000 residential mortgage accounts have built up more than two years of arrears.
An expanded mortgage-to-rent scheme will be outlined allowing homeowners in the Dublin and commuter counties to avail of it. And "red tape" involved in getting an insolvency deal will be removed.