Listen Live

LPT changes being done in interest of fairness, says Social Protection minister

Wednesday, 2 June 2021 10:24

The Social Protection Minister is insisting the changes to the local property tax are being done in the interest of fairness.

It's after the government decided homes built since 2013 will no longer be exempt from the annual charge.

A new valuation system is also going to be introduced meaning some homeowner’s bills will go up, while others will decrease.

It comes as experts warn that house prices in Cork could rise by up to 7% as Covid restrictions are lifted.

The Irish Examiner reports that Goodbody says trends like working from home, pent up demand and additional savings built up by those at work during the pandemic are also influencing the housing market and driving prices up 

Minsiter Heather Humphreys insists the Government is acting in a fair manner in relation to the changes to the local property tax.

"The Programme for Government published in June of 2020 committed to bringing forward legislation for the local property tax on the basis of fairness, and to ensure that most homeowners will face no increase.

"It commits to bringing new homes in which are currently exempt from the local property tax into the taxation system, and I think that's only fair."

Chief Economist with Davy, Conall Mac Coille, outlines who is affected by the changes.

"A third of existing households who pay local property tax are looking at increase of about €90, if you're unlucky you may be part of the 3% who are expected to see a higher increase, €180.

"Then there's roughly 100,000 households who either bought a new build house since 2013 or were a first time buyer in 2013 and they will pay property taxes for the first time."

 

Share

More from Cork