The Irish Auctioneers and Valuers Institute (IAVI), which represents around 2,000 qualified real estate professionals nationwide, broadly welcomes the government's decisive action to bring the economy under control through introducing a supplementary budget on 7 April.

Mr Edward Carey, President of the IAVI said, “IAVI members agree that strong measures to reinvigorate the economy are urgently required in order to stimulate trade and business. We call on the government to urgently find a mechanism to take account of the toxic assets of banks. Until the banking sector comes forward and declares its hand and honestly sets out those of its debts that are recoverable and those that are not, the economy will remain in a stranglehold.

“Without the details of the extent of these bad debts, funding from international lenders is at a standstill, stopping the flow of finance into the county and a vast array of lending to all parts of our economy, including small, medium and large businesses and the vital first time homebuyers' market. This stagnation is unacceptable; until the banks’ loan books are written down it is unlikely that we can move on from this phase.”

“In addition, if our Government decides to reintroduce some form of property tax, they must substantially reduce or abolish stamp duty which is an up-front taxation on property. Any hope of activity in the market will be quashed if a property tax is introduced in addition to the current penal stamp duty rates. Agricultural and commercial land would also benefit greatly from a roll-over relief on capital gains tax.”

“In assessing all its budget considerations, we also ask the Government to consider tax relief or a rebate in VAT for hard-pressed first time buyers who are likely to be hit by increases in PAYE and decreasing take home pay. Any move to ease the access to reasonable levels of finance and improve the ability to buy a home would invigorate the whole market, as more buyers in the lower sector of the market would permit others to trade up.

“The IAVI continues to lobby both the Government and lenders to consider the people who make up the economy and pass on ECB rate cuts to all homebuyers and investors, so that the cost of providing quality private rented accommodation is not increased. Property markets are an essential cog of every economy and a lifeline is needed to stimulate sales and growth.

“IAVI members are acutely aware that there are many people experiencing unexpected negative equity. At present, there are many instances where we have a seller and buyer lined up and a price agreed that is short of the original purchase price. The problem in this equation is the banks, as they are refusing to accept the current commercial realities and share their burden of the hit that everyone else is facing.”

“We need action and measures to rectify this situation. In the USA, a system known as ‘short selling’ has proven very effective in this regard – by agreeing on a mortgage settlement with their lenders, homeowners are allowed to sell a house at a price that may be less than the amount outstanding on the mortgage. We know that Northern Ireland is looking at a ‘Mortgage Rescue Scheme’, whereby the government will step in to assist those having difficulty with their repayments. By its arrangement to temporarily take an equity share in the property, the Government will affect a drop in the repayment level of the homeowners.

For further information please contact:
Carina O'Neill
Bracken Public Relations
Tel: +353 (0)1 677 3277
Mob: + 353 (0) 87 222 8124