Homeowners face hikes of up to 150pc in property tax bills
Rising prices will hit families in the pocket in 2019 revaluation
Thousands of homeowners can expect hikes of up to 150pc in their local property tax (LPT) bills when a revaluation takes place in just two years' time after the local elections.
Rising property prices across almost all counties will see the vast bulk of owners paying more LPT, with increases of up to €146 expected in some places.
But property owners in expensive parts of the capital will see their liability fall, despite a steep rise in selling prices.
This is because local authorities are free to adjust the rate up or down by as much as 15pc, and the lower rate which applies across Dublin means these homeowners will enjoy a lower rate than they currently pay.
The LPT was introduced in 2013 and the amount due was based on prices as of May that year. Homes were due to be revalued in November this year, but last October the Government decided to postpone the revaluation until 2019 amid concern that rising prices would result in significant increases for homeowners. A review of the tax is currently under way.
An analysis of the bills families are likely to face in 2019 is based on data from property website Daft.ie. It compares the 'average' asking price for a property in each county in the second quarter of 2013 and the corresponding period of this year. The analysis suggests most households will pay more.
Unless there is a significant ramp-up in house construction, property prices are likely to continue to rise, which will mean people could have to dig even deeper to meet the increased bills in 2019.
Based on current asking prices, the analysis shows that the 'average' home in the capital will incur a higher liability, up to 53pc in Dublin 22, which will add €119 a year to bills.
Outside of Dublin, increases will be as high as 150pc in Leitrim, where the LPT will increase by €135 to €225. The most expensive average LPT will be in south county Dublin, at €803 per year. This is up €128, or 19pc.
For the 'average' property, homeowners in Dublin 22, which includes Clondalkin and Newcastle, can expect to pay 53pc more, the highest increase. House prices have risen by 42pc in these areas, according to Daft.ie.
There will also be steep rises of 33pc in Dublin 7, Dublin 10, Dublin 15, Dublin 20 and west Dublin.
In financial terms, the highest increase is in Dublin 14, which includes Churchtown and Rathfarnham. The LPT is expected to increase by €146 a year, or 21pc. There will be increases of more than €100 in Dublin 7, Dublin 15, Dublin 20, Dublin 22, south Co Dublin and west Dublin.
But in some areas with high house prices the increases won't be as pronounced. In Dublin 1, prices are up 50pc but average LPT liability will increase by just 9.2pc.
For a three-bed semi-detached home, the capital is a tale of two cities.
At the upper end, homeowners in Dublin 10 (Ballyfermot and Cherry Orchard) face being hit with property tax rises of almost 53pc, up €119 to €344.
At the other end, homeowners in some of the most expensive areas will see a drop - in Dublin 6W, which includes Templeogue and Terenure, the bill will fall €25, or 3.7pc, to €650. In Dublin 16, they will fall 2.1pc to €573, down €12.
Longford homeowners face the highest increase, up 142pc. This equates to an LPT rising from €90 to €218, an increase of €128. Steep rises of 40pc will also be felt in Wexford, Kilkenny, Westmeath and Offaly. Rates remain flat in Laois and Carlow.
House prices have increased by 47pc in Meath, where an average home now costs €222,000. This will correspond to an LPT increase of around 28.6pc. In Kildare, where prices rose 43pc to €226,000, the LPT will go up €59, an increase of 18.7pc.
For three-bed semi-detached homes, many counties will see a 150pc increase in the LPT. Homeowners in Offaly, Westmeath, Laois, Carlow, Kilkenny and Wexford can expect to pay €225 a year, up €135 each. In Louth, an increase of 145.6pc is expected, up €131.
LPT liability in Limerick city and county, and in Kerry, is expected to increase by 40pc. There is no change in Waterford city and county, and Tipperary.
In Cork City, where prices have increased by 37pc, the average LPT liability will rise from €315 to €344, based on current rates. This equates to a 9.2pc hike. For three-bed semi-detached homes, increases of 150pc are forecast in Waterford city and Kerry. In Clare, they will increase by 112pc, and by 61pc in Cork city.
Homeowners in Leitrim will see a 150pc hike in the LPT, up from €90 to €225, an increase of €135.
Conversely, properties in Monaghan will see a reduction in the LPT - the only county in the country across all property types where this will occur. Despite prices rising 14pc in Monaghan, the LPT will drop from €225 to €208, a fall of 7.6pc or €17.
There is no change in most counties, as property prices haven't moved. No changes will occur in Mayo, Roscommon, Sligo, Donegal and Cavan.
LPT bills will increase in Galway city and county - up 28.6pc in the city to €405, where property prices increased 44pc to €236,000.
In Galway county, they will increase by €90 to €315, a hike of 40pc. Property prices rose by 27pc across the county.
For owners of three-bed semi-detached homes there is little change, except in Galway city. Prices have risen by 46pc in the City of the Tribes, which correlates to a 40pc hike in the LPT, up €90 to €315.
Rates will fall in Monaghan, down 7.8pc or €7 per year. There is no change in Mayo, Roscommon, Sligo, Leitrim, Donegal and Cavan.