The introduction of a property tax holiday until 2016 for first time buyers and those who purchase new or unoccupied homes is welcome but it won’t have a positive impact on the residential property sector, according to the Construction Industry Federation (CIF). According to the CIF the measure removes a hurdle from people interesting in entering the residential market for the first time, but it will not have a measurable effect on the industry at large.
“We are glad that the Government has made some adjustment to the property tax and put in place a measure that will ease the way for people who are considering entering the residential market,” said CIF Director General Tom Parlon. “However the reality is that if the Government is interested in getting the residential property market moving in a positive direction this won’t make a major difference.
“If the Government wants to see positive movement in the residential market then they need to address more of the underlying issues. They need to ensure the banks are providing mortgages to people who are applying and can afford a mortgage payment. They need to help breed confidence in the market so that we can see a more steady position in residential property prices.
“There also have to be measures introduced that will recognise the distinct difference between the various markets that are in place around the country. The residential markets in Dublin, Cork and Galway are recovering quicker than in the more rural parts of the country. This trend is being replicated in other urban areas too. The Government’s residential property market strategy needs to take this reality into account if we are to see the market recover on a sustained basis,” Mr. Parlon concluded.