Rental market can’t survive without tax reform, organisation claims

The IPOA is proposing a number of practical measures to level the playing field for landlords and make the rental market more sustainable. Key asks include:

“Despite the fact that many small landlords are dependent on rental income as their main income and business, business expenses in the rental industry are treated differently to other industries,” the IPOA says.

“Changes such as affording landlords the same access to tax deductible expenses as sole traders and allowing Local Property Tax as a business expense would go a long way to rejuvenating viability of the market,” they claimed.

“The IPOA also backs a tiered relief system for RPRIR allowance, that reflects the reality of the market. As of Q4 2024, 72% of all landlords had only one or two tenancies, and 79%, or 83,031 had 3 tenancies or fewer. As such, allowing the RPRIR credit to be claimed for up to two or three tenancies would provide a benefit for the vast majority of landlords,” they added.

The IPOA is also calling for the Government to introduce a limited, trial-based investment scheme aimed at attracting individual investment into the rental sector, taking learnings from the “overextension and unsuitability” of previous tax relief schemes.

Mary Conway, Chairperson of the IPOA, said “It is clear that radical changes are needed to stabilise the apprehension in external investment in the Irish property market and to accelerate progress in housing delivery. As the national voice for private residential property owners, the Irish Property Owners’ Association has a deep knowledge of the sector, and we believe that these proposals are urgently needed to inject fresh energy to the market.

With uncertainty, rising costs and inflation, it is imperative to reform taxation of landlords in recognition that letting of residential property is a legitimate and important business activity. Meaningful supports, incentives for investors, and fair tax treatment will go a long way towards stabilising the rental supply, and in turn, controlling rising rents.”