Auctioneers unhappy with budget

Irish Auctioneers and Valuers Institute president, Enfield auctioneer Edward Carey, says that last week"s Supplementary Budget will have no significant effect on the property market in one way or another. The IAVI view this as a missed opportunity to create more transactions and generate more VAT and Stamp Duty revenues. 'The IAVI welcome the initiative to establish of National Asset Management Agency,' Mr Carey stated. 'The speed with which it starts to act will determine its success. It is important that the assets are transferred at true values in the interest of taxpayers.' He said: 'There has been nothing further to entice first time buyers in to the market. However, we hope that the restoration of normal credit facilities, coupled with correction in property prices that has taken place, will increase activity.' 'The reduction of interest rate relief for investors will be a disincentive to providing rental accommodation for those who are renting not buying. Investors are necessary for the provision of good quality rental properties for those who cannot or do not want to buy property.' Mr Carey says that the IAVI believe that stamp duty 'trade up" scheme will have minimal effect as it will arise in very few cases. 'The withdrawal of tax incentives for the provision of healthcare infrastructure is risky as there is a reliance on the private sector in this area. This will be a challenge with credit thin on the ground. Those likely to suffer are the end-users. The cumulative 25 per cent rate increase, from budgets in December 2008 and April 2009, in Capital Gains Tax will have minimal effect on Exchequer returns without a marked increase activity in the property market, which this Budget has done nothing to encourage,' he said. The Irish Auctioneers & Valuers Institute (IAVI) represents around 2,000 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad. The Supplementary Budget will further delay the re-kindling of activity in the housing market, according to the president of the Institute of Professional Auctioneers & Valuers (IPAV), Alan Redmond, said the restriction of mortgage interest relief on principal private residences to seven years and the reduction of tax relief investors can claim on the interest for mortgages and loans on residential properties to 75 per cent were both negative measures which would continue to depress the market and hinder revitalisation. 'What we need now are incentives to give people confidence to go out into the marketplace and make purchases,' said Mr Redmond. 'There is nothing in the Budget which gives provides that confidence.' Mr Redmond added that the proposed Stamp Duty 'trade-in' scheme appeared complex and required further study when the detailed measures are published in the upcoming Finance Bill. On the face of it, it appeared to contribute little to incentivise the market as property developers were not in the building of trading in second-hand houses.