14.10.08 Auctioneers have described Budget 09 as unimaginative and lacking any real initiatives to re-invigorate the housing market.

However, the Chief Executive of the Institute of Professional Auctioneers and Valuers (IPAV), Fintan McNamara, welcomed the three per cent reduction in commercial Stamp Duty saying it would provide some assistance to a very lack lustre market. But he said he deeply regretted the failure by the Minister for Finance to make any changes in the Stamp Duty regime for non-first time buyers of residential houses.

“Like some previous Budgets, the devil is in the detail and we will have to await further briefings from other Ministers including the Minister for Housing before we can properly assess the full implications,” he said. “In particular, we await further details of the new Government Equity Initiative scheme which seems, on first reading, to be very restrictive.”

In particular, Mr McNamara expressed grave concern at the new €200 local authority charge on all private rented accommodation, holiday homes and other non-principal residences.

“While the figure may appear relatively low, it acts as a further disincentive to the many thousands of people who provide private accommodation to students and short-term dwellers thereby relieving the State of a major burden,” he said. “I am calling on the Minister to review this penal tax in the upcoming Finance Bill as these people are already faced with new energy rating charges.”

Mr McNamara also criticised the decision to decrease the amount of mortgage interest available to non-first time buyers from 20 per cent to 15 percent which, he said, would act as yet a further disincentive to the property market.

“The Minster specifically said in his speech that this measure ‘is not set in stone’ and IPAV is calling on him to again seriously reconsider its implementation on further reflection,” he added.

Equally, Mr McNamara criticised the increase in the rate of Capital Gains tax from 20 per cent to 22 per cent which would act as yet another block to increasing movement in the current housing market.

For further information contact Tim Ryan Communications on 087 2471423