Nationwide property group, Property Partners have welcomed the ‘Help to Buy’ scheme announced in Budget 2017 but have said that ‘an opportunity has been missed’ to address the perilously low supply of rental property which currently stands at only 3,500 units in a market that has a demand for a significantly higher number.
John Buggy of Property Partners Buggy said “The supply of rental properties available currently at a local level can be counted on one hand. Additional incentives are need immediately to entice investors back to the rental market. Ultimately if this is not addressed it will be the first time buyer that will be worst affected as they will continue to be excluded from both the mortgage market, due to the onerous earning requirements and the rental market due to exorbitant rents. The expected reduction in VAT on new homes from 13.5% to 9% did not materialise and would have been of real assistance in the delivery of additional homes.”
According to Ronán Long, Chairman of Property Partners, “Residential rental values are spiraling out of control, especially in large urban areas with increases of up 40% experienced over the last three years. This simply is not sustainable and while the ‘Rebuilding Ireland’ initiative addresses future needs, the short term supply of properties to rent is not being adequately addressed. The increase in the relief from 75% to 100% over the next five years is to be welcomed however the affect will not be felt quickly enough”.