17.04.07 - IAVI President calls for reduction in stamp duty rates

At the Annual General Meeting of the Irish Auctioneers and Valuers Institute today , the incoming President, Mr.Robert Ganly, called for a reduction in the top rate of stamp duty on existing commercial, residential and agricultural properties to the original level of 6%.

“We now have eleven rates of stamp duty and what we are proposing is reducing this to just four: 0% up to €250,000, 2% on any balance up to €500,000, 4% on any further balance up to €750,000 and 6% payable on the remainder of the consideration. A €1M property, which now attracts duty of €90,000, would instead be subject to duty of €30,000; a €3M property would attract duty of €150,000 compared to the current €270,000 - still a hefty tax, but at least equitable. First time buyers should be exempted from stamp duty on the first €500,000 of consideration,” he said.

Turning to agricultural issues, the new IAVI president warned that while there is a substantial opportunity for land owners with high value agricultural land to borrow against these assets to acquire other properties, there was anecdotal evidence that some of the foreign projects attracting such investment were highly speculative in nature and being developed in areas with no established rental market.

Welcoming the draft legislation for state regulation of estate agents through a regulatory authority, Mr. Ganly said that it presented a golden opportunity for the Government to rid the market place of misunderstanding as to what an estate agent should and should not do.

“Agents will obey the law” he said, “politicians must ensure the law reflects what society wants and cease blaming agents for complying with what legislators put in place”.

“The new authority should pay particular attention to certain franchise operations that have imported foreign structures that do not fit well with existing or proposed Irish legislation governing the licensing of estate agents. Self-employed individuals who act as independent agents of a single license holder do not comply with licensing legislation unless they are individually licensed. Where they are individually licensed, they cannot trade under a collective title.

The new Regulatory Authority clearly needs to show its teeth in this regard as soon as it is statutorily established,” he said.

In relation to a recent published report regarding IAVI matters, he stated “In light of the article that appeared in the Irish Times of Thursday 5th April entitled ‘More Power to the President’, I confirm, on behalf of all members of the IAVI Board, that no changes have been discussed or mooted at Board or National Council levels that involve a change in either the chief executive’s role or the presidential role within the IAVI, or an extension of the IAVI presidential term, or a switch from chief executive to president as the IAVI’s principal spokesperson.

Not a single member of the IAVI Board shares the views expressed in the article in question, which we understand was published as a consequence of information obtained from a single non-IAVI source, without reference to any official IAVI source for confirmation or otherwise.

Every member of the IAVI Board acknowledges the current IAVI chief executive’s excellent leadership, strategic, administrative and communication skills, which are well recognised throughout the entire organisation of the IAVI and in wider business circles, particularly those of both association management and property.”

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