As another year draws to a close and as we reflect on what it has delivered, it will be marked largely by rising prices for residential property, rises of the order of 10%. That level of increase is hardly sustainable into the future, but it is happening because of the vibrancy of our economy, our growing population and the supply of homes failing to reach anywhere remotely close to meeting demand.
The first two factors are relatively unique in the current European context – they are interlinked, and they are huge factors that contribute, along with our history, culture and location, towards making Ireland a very attractive and desirable place in which to live.
That is not to say that we do not have problems. We most certainly do, and the lack of supply of suitable homes at a ordable prices, attainable by those under age 40 in particular, is right up there in the list of issues that need to be addressed.
As we in IPAV have stated publicly on many occasions and in di erent forums, a continuation of the approaches we’ve seen to date will not be su icient to address the severe housing shortage. Piecemeal solutions forced on the political system often by those who shout loudest and come from an ideological perspective that doesn’t value or appreciate private investment, and those within the system of decision making who lack knowledge of property market dynamics, should not be allowed to dictate future housing policy as they have heretofore.
In this regard, our new Government will have a five year horizon in which to act before it has to face the electorate again, and it has the benefit of seeing what has and hasn’t worked over the last decade. It needs the courage to genuinely learn the lessons and take decisive and coordinated action. It could start with facing up to vested interests by implementing the recommendations of the Housing Commission report. Key among these was the setting up of a Housing Delivery Oversight Executive. This time limited, legislative structure would coordinate housing policy giving the issue whole of Government attention, just what’s needed.
It is in all our interests that our new Government succeeds, and in this regard we wish them well.
Meanwhile I would like to wish you a very Happy Christmas season. I hope you will be able to relax and enjoy this rare and precious down time with your family and friends. I look forward to meeting you early in the New Year and I wish you every success and happiness in 2025.
Davitt, FIPAV REV
Trump Threat To Transition Us Towards Fairer Treatment of SMEs? HOT TOPIC:
Pat Davitt looks at what the US election result may mean for us.
“Large, well-connected and influential firms dominate the list of developers that have received loans from the taxpayer-funded HBFI [Home Building Finance Ireland] scheme, new analysis by the Sunday Independent shows.”
So read Fearghal O’Connor’s 24th November story noting the scheme was introduced with a remit to back small developers in areas where the private sector was unwilling to lend.
Well déjà vu. IPAV warned Government numerous times over the years of this very risk. In a public statement on the opening of the €750 million fund in January 2019, we warned that interest rates applying must be realistic for SME builders. “If the terms are unrealistic and don’t take cognisance of market conditions for SME builders then the loan scheme will be superfluous and only benefit those who don’t actually need it, who would already be in a position to acquire funding from existing sources,” we said.
We have a real problem in how public policy treats major corporates versus the SME sector. IPAV has often spoken about the unequal treatment by the State between private and institutional landlords, the latter receiving disproportionately more favourable tax treatment.
But leaving that aside, a conversation springs to mind of an SME business owner at a wedding a few years ago. Seated next to a recently retired Assistant Secretary from the Department of Finance, she posed the question as to why the Department almost
always awarded contracts to the major four/ five well-known accountancy firms rather than considering SME operators. Turning to face her, animated he responded: “Oh good God no, I would rather not award the contract at all than risk giving it to a smaller operator.”
This example demonstrates risk aversion in the public sector that we know from studies, including the Housing Commission report, is the cultural norm. To succeed you dare not have a mistake on your record. That culture does not support those within the system wanting to innovate and do things better. It amounts to discrimination against SMEs.
Recent data from the CSO indicates that
SMEs accounted for 99.8% of all enterprises and 68% of employment in 2022. Those with under ten employees, formed 92.3% of enterprises and 26.9% of employment.
Any analysis of ministerial statements over the years will quote figures like these, invariably accompanied by strong sentiments about the importance of the SME sector. Mario Draghi, former Italian Prime Minister and former head of the European Central Bank, recently warned the EU of the need to act and treat SMEs better. He identifies the challenges and sets out what the EU needs to do in his Future of European Competitiveness report.
We’ve talked for a considerable time about our economic vulnerability with an over dependence on a small number of foreignowned multinationals. US owned enterprises account for the largest share (74%) of all turnover by such multinationals.
President-elect Donald Trump’s new Commerce Department lead, Howard Lutnick, has specifically cited Ireland as running “a trade surplus at our expense.”
It’s beyond time to end the platitudes and act to support our SMEs.
Rostrum Auctioneers Competition Tattersalls, Co Meath
Austin Board of REALTORS® Webinar Choose Your Brew Registration Opens for Level 6 Higher Certificate in Business in Real Estate, Valuation, Sale & Management
April
IPAV PSRA CPD Live Webinar (5 PSRA CPD Hours)
May
IPAV AGM Herbert Park Hotel, Dublin 4
June
IPAV Annual Conference & Dinner Farnham Estate Spa & Golf Resort, Co Cavan (Conference: 2 TEGOVA CPD hours)
August
YPN AGM & BBQ
IPAV, 129 Lower Baggot Street, Dublin 2
September
YPN Golf Classic, The Heritage Golf Resort, Killenard, Co Laois
IPAV Member’s Lunch (Cork) Above events subject to change
Industry Update
IPAV webinar on CRR changes coming into e ect from January 2025
Event: Wednesday 8th January @ 1pm via Zoom
CPD: 1 TEGOVA CPD Hour
This is a must attend webinar for TRV & REV members, as the changes to the Capital Regulation Requirements (CRR) coming into e ect in January 2025 will directly impact valuation reports and the standards to which all valuers must adhere. Importantly, the disclaimer under the CRR, will need to be used and understood by all valuers to maintain compliance with current regulations and best practices.
Registration details will be circulated from IPAV head o ice.
IPAV PSRA CPD Bundles: Closes 31st December 2024
IPAV’s PSRA CPD Bundles are available to any agent who has not yet completed their 2024 PSRA CPD hours. We advise a bundle is purchased as soon as possible, and you have a note of your account details for accessing the bundle, as there will be no technical support available from IPAV after 5pm, 19th December. Please note all modules must be completed in advance of midnight 31st December 2024, when the system automatically closes.
Speakers:
Key Amendments to Professional Indemnity Insurance Regulations
The PSRA has undertaken a review of the current Professional Indemnity Insurance (PII) Regulations, and licensees should familiarise themselves with several changes to the PII Regulations that will come into e ect from 3rd March 2025.
• New PII Regulations e ective 3 March 2025 -Renewal of PII Policy after this date –new amendments apply
• Certificate of Compliance – Insurance Brokers will provide in addition to their policy, a single page “Certificate of Compliance” detailing the licensees PII policy is in compliance with the new PII Regulation. Engagement is ongoing with Insurance Companies with a view that they will also provide a “Certificate of Compliance” to their clients.
• Minimum PII cover increases from €500,000 to €1million
• Defence costs are in addition to minimum PII cover
• Run-O Cover on ceasing a business removed -Risk based approach -7 year run-o cover eliminated
- Licensees must ensure that they have su icient PII cover post ceasing to trade to ensure that in the event of a claim, there is PII cover to meet the claim. The level and duration of cover is a decision for the licensee leaving the business.
• Any policy excess agreed, agent must ensure the agreed excess is met by the licensee in relation to each and every claim.
Pat Davitt CEO, IPAV
Paulo Barros Trindade Chairperson, TEGOVA
Click here to access bundles
EDI Masterclass
Celebrating Diversity and Fostering Inclusion
During the
Festive Season
What’s being celebrated?
A look at all the different religious festivals and celebrations that take place during this time…
Key Dates
Christmas
December 25th
Hanukkah
December 25th, 2024 – Jan 2, 2025
Ramadan
February 28, 2025 –Mar 29, 2025
Diwali
October 20, 2025
Buddhist New Year
January 14, 2025
Chinese New Year
January 29, 2025
‘Tis the season to be jolly, but it’s also important to recognise all of the different religious festivities that are celebrated at this time of year. Here, IPAV president and EDI manager Lisa Kearney looks at how we can be inclusive during the holidays. “As the festive season approaches, our homes and workplaces come alive with celebrations, decorations, and events. It’s a time of joy and connection but it also serves as a reminder of the diversity of faiths, traditions, and beliefs that coexist in our society. While December is most commonly associated with Christmas, it’s important to remember that many people celebrate different festivals – or none at all. Embracing this diversity is not just a matter of inclusion; it’s an opportunity to foster mutual
respect and understanding. Recognising and respecting these varied traditions allows everyone to feel valued and included. It’s not about diluting any one celebration, but about broadening the lens through which we view this time of year. Religious equality is not about sidelining dominant traditions; it’s about ensuring that everyone feels equally valued and respected. This festive period, let’s strive to make inclusion and respect part of our celebrations. In doing so we create an environment where everyone feels they belong – regardless of their faith or beliefs. Let’s make this a season that truly embodies the spirit of unity, peace, and goodwill –a season where everyone has a reason to feel joyful.”
We’re always happy to hear from you so please contact the EDI team valerie@ipav.ie
Online offers adoption by estate agents nationwide is growing rapidly.
In today’s fast-paced world, vendor and bidder expectations for out-of-office hour services and real-time information are insatiable. We’d like to help you save time and remain responsive, without adding to your workload.
That’s why Offers by Daft is designed to support you by streamlining the process, ensuring you can meet your clients demands effortlessly, even when you’re away from the office.
We’ve listened to valuable feedback from agents and made updates to our Online Offers product. You now have the option to choose whether offers on your properties are visible to everyone publicly or only to approved bidders who have been approved by you.
This added flexibility was developed in response to the needs expressed by agents like you across the country.
NEW FEATURE
HOUSING POLICY Going Round in Circles?
Pat Davitt breaks down the spiralling cost of building a home in Ireland, and the vital role that VAT plays
in proceedings.
It’s hard to escape a feeling that much of housing policy revolves around a series of circular motions, like a dance that enthusiastically takes on new partners but remains on the same floor space. And as recent political insights would seem to attest, one dare not offend the ‘architects’ of the current policy.
Consultants Mitchell McDermott in October 2024 produced its Total Development Cost Study for Government.
It covers the greater Dublin area, comprising Dublin, Meath, Kildare and Wicklow. It found the total costs, including developer margin, of a three-bedroom semi-detached home was €450,652; a suburban two-bedroom apartment was €549,790 and a standard two-bedroom urban apartment was €591,783.
Taking the three-bedroom home VAT comprises €39,055; development contributions are €17,306 and utility levies €7,801. This brings to €64,162, or over 14%, the proportion of the purchase price that goes to government or government
agencies, such as Uisce Éireann.
A typical first-time buyer would need a mortgage to buy such a property. After paying a deposit of 10% or €45,000, the maximum mortgage achievable would be €405,000, assuming earnings levels and career type support such a loan.
The weighted average interest rate on new mortgages in September was 4.08%. Rates vary depending on a number of factors. However, taking the 4.08% rate, the monthly capital and interest repayment on the €405,000 loan over 25 years would be €2,727.
If the €64,000 of State charges were taken off the purchase price of €450,652, the mortgage loan, after the payment of a 10% deposit, would reduce to €347,400. This, at 4.08%, would mean monthly repayments of €2,339. If only the VAT of €39,000 was removed the loan would be €369,900, meaning monthly repayments of €2,490.
The mortgage holder has to borrow up front to pay the VAT and other charges and repay it with interest to the lender for the
term of the loan. Separating out the State charges from the rest of the loan, on the €64,000 the mortgagee would be repaying €430 every month, and on VAT alone, €39,000, the monthly repayment would be €263.
Under the Help-to-Buy scheme, income tax paid in the previous four years, up to a maximum of €30,000, is repaid to first-time buyers of new homes. So effectively the State is taking on the one hand and giving back with the other. The home buyer pays far more to the State and lenders than they get back.
Currently VAT on new homes does not apply in Northern Ireland or the UK generally. One of the main arguments against cutting VAT on new homes is the fear it would be consumed by builders and developers rather than being passed on to buyers. But IPAV believes this issue could be addressed.
The Mitchell McDermott findings were hardly new or surprising. The 2020 Programme for Government stated “construction build costs account for c.47%
Cost of delivering a 3-bed semi-detached home in the Greater Dublin Area
of total apartment development costs.”
‘Rebuilding Ireland’ the Government’s 2016 housing plan committed to publish such data “with a view to identifying economies.”
Political Insights
In his recent book ‘Running from Office’ former Minister for Housing Eoghan Murphy, who served in the role from 2017 to 2020, describes reviewing ‘Rebuilding Ireland’ with the aim of achieving progress within his first 100 days. The plan he states “made the cardinal mistake of overpromising and under-delivering” and contends it was based on “shaky data”. He articulates his frustration with attempting to change housing policy citing myriad obstacles, such as when he wanted to declare housing an emergency so that he would be allowed to “short-circuit our cumbersome hierarchy of planning laws.”
He was told it couldn’t be done, as under European law an emergency could only be declared if it hadn’t been foreseen. He also cites how reviewing Rebuilding Ireland would be interpreted by Government and
€450,652
One of the main arguments against cutting VAT on new homes is the fear it would be consumed by builders and developers rather than being passed on to buyers.
his party as criticism of the existing plan. “Noses were out of joint. People were determined to protect their work and protect their reputations,” he says.
Conclusion
The Housing Commission, set up in December 2021, was one of the main recommendations in the 2020 Programme for Government. Reporting in May 2024, it identified as core issues “ineffective decision making and reactive policy making where risk aversion dominates.”
In November a member of the Commission, Ronan Lyons, Associate Professor in economics at Trinity College, writing in The Currency, publicly challenged
the Department of Housing’s new revised estimate of the housing deficit, which is roughly 100,000 less than that found by the Commission.
None of this augurs well for the future of housing policy. As IPAV has said on so many occasions, to deal effectively with this critical social and economic issue, things need to be done differently than heretofore.
We can only hope that our new Government will have the courage to see the light, cut through the nonsense, listen to genuine expertise, not over rely on officials, and get on with delivering homes at scale.
This feature was published in the Business Post on 15th December, 2024
Graph Source: Mitchell McDermott Oct. 2024
Competition:
2025 Rostrum Auctioneer Competition brought to you by
IPAV’s Young Professionals Network
7th
March 2025
We invite all auctioneers – both novice and experienced –to enter YPN’s 2025 Rostrum Competition.
This is a fantastic opportunity to showcase your skills in the famed Tattersalls Sales Arena and compete for a place in the final. First Prize for the Novice Winner is a week-long training with America’s Auction Academy in Texas, and First Prize for the Professional Winner is entry to the renowned Lone Star Open Auctioneer Championship held in Texas. This is an exhilarating and unique competition, and we look forward to circulating details early in the new year. In the meantime, here are 2024’s winners...
Kevin Hassett Craig Lovett
Novice Rostrum Auctioneer Winner
“Winning the 2024 IPAV Novice Rostrum competition was a truly rewarding experience. It provided me with an incredible opportunity to challenge myself, learn a new skill and gain recognition within the industry. The competition was a valuable platform to showcase my abilities, while also allowing me to connect with other professionals in the field. Being part of the competition was not only a chance to compete but also to learn, as it pushed me to step outside my comfort zone and present myself in a new light.
Winning was a proud moment in my career and reinforced my passion for what I do. It also allowed me to be part of a supportive community within IPAV, which continues to inspire and motivate me. I’m particularly excited about the prize – a scholarship to study at the Mike Jones Auction Academy in Dallas, Texas in January 2025, an experience I’m eagerly looking forward to. Since winning, I’ve been fortunate to conduct a charity auction and work with other organisations, further expanding my skills and strengthening my experience on the rostrum. I hope my journey encourages others to take part in future competitions and discover what opportunities can arise when you step outside your comfort zone.”
Professional
Rostrum
Auctioneer Winner
“IPAV’s Rostrum Competition was a fantastic experience. I was delighted to take part and compete against some of Ireland’s finest Auctioneers and thrilled to be the inaugural winner of the IPAV Top Rostrum Auctioneer Competition.
I have always loved selling livestock and I am looking forward to representing IPAV at the prestigious Lone Star Auctioneering Competition in Dallas, Texas, this coming February. It will be a great opportunity to see how auctions are conducted in the US and hopefully learn a thing or two.” I will also be visiting IPAV’s partner, Mike Jones in America’s Auction Academy and performing a charity auction for the students there.
IPAV’s competition not only celebrated Craig’s and other competitor’s talents, but also highlighted IPAV’s commitment to fostering excellence within the auctioneering profession, while also recognising and promoting top-tier auctioneers in Ireland.
Venue: Tattersalls Ireland, Co Meath
ARTIFICIAL INTELLIGENCE
How to ...
Use AI in Property Management
In the last issue, we talked about how our members are using AI in their work. Here’s Aaron Devitt, Founder and CEO of MARC, to tell us how his AI software is saving IPAV members all across Ireland dozens of hours per week in property management.
“Using
AI is a must in 2024/2025. But as agents, how can we learn more about it?
IPAV members all over the country are now leveraging AI to save time, money and sta hours. One great example of agents using AI to save money directly is through my software company MARC. Very simply, MARC is an AI agent, which does all the repetitive tasks of your sta when managing property, at a fraction of the cost. MARC communicates with your tenants, landlords and contractors – putting property management into auto-pilot. That allows you to focus on the more important and higher-yielding activities in your business.
MARC first communicates with your tenants when they have a query or maintenance request. Think of the most repetitive enquiries you get from tenants – now imagine a tool that is populated with these answers, and is available to your tenants 24 hours a day, 7 days a week. Tenants can communicate via text or through AI voice models where they can have conversations with MARC. MARC is trained on your business’s information and so, MARC can converse just like an extra member of sta ! If the tenant’s query is one that requires agent intervention, MARC escalates the query to the human agent’s desk, with a tradesman-level diagnosis, photos and videos of the issue and a conversation transcript so agents,
landlords and contractors have 100% context without needing to send more emails for clarification.
From here, human agents click one button and MARC can mail/call landlords and contractors on file to organise a repair,
again without the need for human agent involvement, further saving sta hours per maintenance request. MARC can now call your contractors, describe the maintenance issue, gather a quote and book them, all in a 90-second phone call without a human needing to be involved.
Think of MARC as an extra member of sta available 24/7. MARC is used by some of the largest property managers in Ireland, with customers now across the UK & Ireland... in my opinion, MARC is the future of property management.”
Word on the Street: IPAV Members on Their Local Markets
IPAV’s European Valuation Conference & Trade Expo highlights networking opportunities, industry growth, and collaboration among agents. And at this year’s conference, it was great to hear first-hand from IPAV Members discussing their local markets.
ONE of our exhibitors
was iPropertyRadio, and Katie Tallon interviewed a number of our members, speakers and exhibitors throughout the expo. This resulted in some fascinating conversations, so with thanks to iPropertyRadio, we are delighted to share just a snippet of some great insights from our members.
We recommend watching the full interviews and thank both iPropertyRadio for being a part of the conference, and IPAV members for taking part.
Maggie Mallett
MIPAV (OS), Windermere Real Estate/ Northwest, Seattle, Washington, USA
Travelling from the States, Maggie attended the conference to learn more about the Irish Sales Market, noting one of the major di erences is buyer representation between Ireland and Seattle. Maggie added she would love to help anyone with their purchase on the West Coast or in particular Seattle, Washington.
Janet Carroll
MIPAV, Janet Carroll Estate Agents, Blackrock, Co Dublin
Discussing the market in South County Dublin, Janet remarked on the surprisingly high volume of properties being o ered in November, with prices sometimes exceeding expectations by €100,000 over AMV. Janet also said that a lot of her buyers are international cash buyers, who are able to outbid people going through the process of a mortgage.
Johanna Murphy
MIPAV, Johanna Murphy & Sons Estate Agents, Cobh, Co Cork
Emphasising the high demand for properties, Johanna noted the variety of buyers including first-time buyers, and those downsizing or upsizing. Johanna also talked about the shortage in rental property, and says that now is the right time for investors to come into the market. On Johanna’s wish list is to extend the first-time buyer grant to second-hand homes.
Lisa Kearney
MIPAV, Rooney Auctioneers, O’Connell Street, Limerick City
Discussing the Limerick market, Lisa mentioned high demand, and low supply. Lisa highlighted Limerick’s growth and investment from multinationals, leading to increased demand for housing. She emphasised the need for more infrastructure to support and connect villages and towns around the city, as well as the need for more housing development.
Tom Crosse
FIPAV, GVM Auctioneers, Glentworth Street, Limerick City
Discussing the growing use of online auctions, Tom detailed the benefits and e iciencies of the blended auction system using the LSL platform, adding that some vendors and buyers now favour them. Buyers can maintain their anonymity or if away can avail of the user friendly App. Tom said about 10% of their sales (particularly land auctions) are now through this system, stating this will grow further.
Colm noted that prices are at an all-time high, and the supply of houses is scarce, adding there is a shift from investors to owner-occupiers in the market. Colm also talks about the lack of rental properties available and discusses how very well connected Gort is for commuting to Limerick & Galway, and also price comparisons between Gort and Galway City.
Ciarán Dunphy
MIPAV, DNG Ella Dunphy, Ormonde Street, Kilkenny City
Looking at property prices, Ciarán discussed the upper end of the market, noting prices might not increase, while the mid and lower end of the market continues to increase. Ciarán said that rents in Kilkenny are somewhat stable, but still increasing, and stock is low for first-time buyers.
Tommy Barker, Property Editor of the Irish Examiner, makes his predictions…
Right, the election is over. Government in; new energy; targets set, nailed down in manifestos. Happy days. So, let the houses flow, spinning shiny new o the conveyor belt: after all, political promises are for real, aren’t they?
Pardon the cynicism but, just between us, it’s shared, isn’t it?
Housing targets bandied about in the election’s run up can get parked up now for another while, parked under ‘political promises’, to be dusted down some time in the near of mid-future to be reassessed “in the light of current circumstances.”
It’s a game, most of us know it.
‘They’ know it. The electorate at large knows it, at least those old enough to have voted once or twice by now, who’ve been ‘churched’ by the rude awakening they’ve done nothing wrong, only fall for the sweet-talking schmooze of political propaganda.
Gospel
Now comes the slow grind: to paraphrase a genius slogan from an election seemingly aeons ago “a lot done, more to do.”
That auld one? The Gospel according to Bertie: 2002?
It’s a one-size-fits-all slippery one, a ‘get out of jail’ card; one which can be used in almost any circumstances of blame/ under-achievement/falling short/being caught out/just falling short of, eh, ‘targets’.
We’ll see it dusted down again, and again, this manifesto follow-up for laggards.
This wearying wave of cynicism came over this journalist in the 2024 General
The Election Aftermath: WILL PROMISES BE KEPT?
Election run-up while writing about an individual property sale near a site which has a history of hope/planning and development aims going right back to 2003. The proposal was and still is on, let it be stressed, appropriately zoned lands on a city’s edge, yet one that is still producing agricultural harvests, not homes.
The location’s past sorry history became present, and future-looking too, due to the Lazarus reawakening of a major planning application for the zoned landbank 20 years or so on after not one, but two Bord Pleanála rejections: today, we’re still talking up to 1,000 homes, over the next five to ten years.
Subject to planning
There’s no real need here to say where it is, who’s behind it, or why it lay fallow for over two decades: most IPAV members will have similar examples on various size scales their own geographical patch which can be loosely attributed to, eh, a dysfunctional planning system?
But looking back on the record of this major scheme, which would have been a racing certainty seller back in 2003 if it got a green light, for many hundreds and hundreds of homes, a bit of sobering number crunching thoughts occurred to this writer. (Caveat, not so good with numbers).
The house being written about was built in the early 2000s, a Millennium Year arrival
and was already ‘dated,’ to use the kindest of cover-all property description terms.
Since 2000, we are now in the hand of a seventh government.
There have been six changes of local authority since then too.
Beyond the bounds
There has even been a change of local authority jurisdiction, following boundary changes/urban extension in 2019 (OK, anyone guessing Cork here?) With a late 2024 planning application for Phase One of c 500 homes, by the time this very real development – which may reach 1,000 units in all - is complete, its fate will be decided by a di erent local authority/jurisdiction.
The scheme now rests – to coin a phrase – with planners and given its scale will likely be a five to ten year delivery project, so there’s likely to be changes along the way (and a few more governments), to react to market forces, to economic headwinds, to government policies, incentives, disincentives and whatever else an uncertain future brings in the interim.
Given development aims for this long-heralded, and long moth-balled site which cost €24 million back in 2003, and given a possible ten year timeline to completion, the buyers at the tail end in the mid-2030s will most certainly be aged in their 30s?
Since 2000, we are now in the hand of a seventh government. There have been six changes of local authority since then too.
This means they wouldn’t even have been born when it was little more than a glint in a developer’s eye…
That’s assuming, of course, it is cleared in jiggy-jig time.
Knowing where the bodies are
But, if cleared, it will most likely be after a referral to this country’s ‘new’ planning appeals body, An Coimisiún Pleanála. This long-promised body is due to replace An Bord Pleanála, which twice in the 2000s rejected the original plans as premature due to inadequate road infrastructure. It’s possibly odd that at least 1,000 other houses got built on either side of this site since, in two subsequent developments, but hey that’s a di erent day’s analysis…
Now, a €100m spend later on roads and roundabouts and a tunnel (right, all clues given by now) in the locale, the ‘subject’ site comes back up for consideration as the country holds its breath (deep breath) to see how the new Planning and Development Bill 2024 will pan out in reality.
That ambitious bill, running to over 700 pages and the third largest piece of legislation ever in Ireland, aims to replace Bord Pleanála; to bring in mandatory decision timelines; and it promises to reform/streamline the appeals process.
The bill wound up being guillotined in the political rush to the door in October just as the election was being stalled and called and stalled and called.
At least it got passed?
Bright side, bright new future, yeah?
The election’s over. We have the new broom, the new bill, the new appeals body, the new energy, new targets, new everything, bar same old politics.
What could possibly go wrong?
Farmers advised to
‘Die With Zero’
Mike Brady on why he thinks farmers should move forward with this goal in mind.
Ireland is now a first world nation and one of the richest countries in the world. As such, people are dying with too many assets and too much money in the bank.
I recently had a conversation with a farmer client who told me that the publication of how much money they leave in their will was of importance to them! I’ve been advising farmers for years that it is best to ‘die with zero’, so this came as a shock.
The usual reaction from farmers is that they will surely need a roof over their head and a lump sum for future emergencies. Or what about if they end up in a nursing home?
I admire farmers who work hard and accumulate land or cash in their lifetimes, but ‘you can’t take it with you’. Success often comes with the sacrifice: hard work can be addictive, the buzz of buying land and accumulating assets can be very
fulfilling, but at what cost to yourself, family and others?
We constantly underestimate the great strides Ireland has made over the last 50 years. Today, there is plenty of money in Ireland – it is now time to consider a different approach.
Most farmers over 50 have acquired significant assets over their lifetimes. Many were reared in harder times and know how to ‘make the pounds and save the pennies’. However, many children of these farmers in their 20’s and 30’s are finding it hard to get on the property ladder as salaries have not kept pace with the rate of house and asset inflation. This is why the farmers who are 50 years plus must look at putting the plan in place to die with zero.
I am not suggesting that they develop a wild midlife crisis and go on a spending spree! However, I am recommending that they do the following:
Transfer the farm business and assets to the next generation.
• Experience life outside of farming before they are too old to do so.
Invest time and/or money in their community or in those less fortunate than them.
Of course, retain a right to live in your house and calculate how much money you need until you die, with the aim to die with zero.
“Many were reared in harder times and know how to ‘make the pounds and save the pennies’. “
There are many benefits in such a plan:
• The younger generation who are well educated and full of energy can utilise the assets to develop the business for their benefit in their lifetime.
• Retirees experience the pride in seeing the family farm progress, without all the risk and work burden.
• Retirees and parents are free to visit family members abroad or spend extended periods of time in other parts of the world.
• Retirees are free to get involved in other activities.
Retirees can invest time and/or money in the community or in those less fortunate than them.
These are just some of the benefits of transferring assets earlier and freeing up some time to experience the great big world out there. I genuinely believe a list of these experiences and achievements would read must better in the newspaper than the reporting of how much money you left in your will.
Mike
Brady Agricultural Consultant and managing director at Brady Group: Agricultural Consultants & Land Agents. The Lodge, Lee Road, Cork. Tel: 021- 45 45 120 email: mike@bradygroup.ie
Does the ‘Mansion Tax’ make sense?
Donal Buckley breaks down the government’s housing policy, and the mistakes it may be making.
I’m beginning to wonder if the Government has made mistakes in relation to key aspects of its housing policy, and in particular its decisions to ban co-living and their predecessor bedsits as well as to slap punitive stamp duties on families who buy houses valued at over €1.5m.
The move to increase the stamp duty to 6% or the so called mansion tax is not confined to single family residences worth €1.5m, as it also applies to the purchase of two residential units of any description. In other words, this could apply to €1.5m properties with a granny flat or say a converted detached garage or stables.
I could understand how the mansion tax would make sense if it was designed to claw back some of the tax reliefs that some of the wealthier overseas professionals enjoy when they come to Ireland under the Sarp special assignee relief programme.
Recent research indicates that Sarp has “proved very beneficial when attracting senior executives into Ireland”. Sarp offers income tax relief on 30 per cent of salary amounts exceeding €75,000, or €100,000 for individuals who arrived after January 1, 2023. The number of executives using the programme increased 25% in 2022 to 2,663, causing the cost to rise to €48 million.
While some left wing critics may ask: ‘do we really need more fund managers and computer engineers such as to justify Sarp?’. However, the incentive makes sense when it comes to attracting medical professionals and the other engineers that we clearly need to improve our health services and infrastructure.
But apparently Sarp may not be attractive enough. Recently Amundi, the
asset manager with €1.9 trillion in assets under management globally, has called on the Irish government to review Sarp, as it says a lack of housing and the high cost of living is making it difficult to attract talent.
So in other words, the mansion tax on top of accelerating house prices could well combine to nullify the benefits of Sarp and deter the professional engineers and consultants that we need from coming to Ireland.
So that’s one argument for abolishing the mansion tax. Furthermore, at a time when there has been much talk about the need for greater efficiency of our existing housing stock, there is a clear need to encourage widowed and elderly single people to ‘right size’ by moving into granny flats in the homes of their adult children, nephews and nieces. This also ensures that such elderly people can have family support and thus
alleviate the pressure on health services. Afterall, the mansion tax would deter such families from trading up to larger houses with granny flats to accommodate their widowed parents.
In relation to co-living accommodation and bedsits, I understood the ban at the time because I too was concerned that it meant diverting developers away from providing much needed family accommodation when homeless families with young children were being accommodated in unsuitable hotel bedrooms. The aim was to prevent the small flats and bedsits that got such a bad name during the twentieth century and instead prioritise family accommodation.
But bear with me and consider this in the context of Government policies which are aimed at facilitating development on
greenfield sites which creates other problems. Not alone does green field housing development mean more and longer commuting distances even from towns and cities, but there are limits to the availability of green field sites and not just because of zoning but more importantly because of lack of services, utilities such as water and sewage.
Furthermore it especially doesn’t make sense to push housing development out of town centres at a time when small businesses and especially restaurants and cáfes are complaining that the centres of our towns and cities need to see more people living in them. Not alone would increased residential occupancy generate more business for them but it would also keep more eyes and ears on the streets and thus discourage anti-social behaviour.
In addition, at a time when derelict sites and unused upstairs space is going to waste in town centres, these could be used for residential accommodation. Furthermore such vacant properties are on serviced land. Experience has shown that private developers have been slow to develop such sites. Is this because planners and urban life style romantics have set their sights too high in terms of uses and designs for the properties permitted to be developed on urban sites?
We need investors to take risks and back developers who can provide accommodation that is in demand and affordable. So co-living could help both to accelerate the numbers of residential units available while also playing a key role in rejuvenating town centres. Indeed co-living residents are less likely to socialise in the
co-living units which are little bigger than hotel bedrooms, hence they will be more willing to socialise in town centre facilities such as cafés, cinemas, pubs and theatres and bring life back into town and city centres.
Also co-living facilitates young people who wish to get out from their parents homes and have some cash to put aside for a deposit on their own homes. Also we need them to accommodate the returning expats and immigrants who we need to attract here to fill the hundreds of vacancies in the vital services such as teaching, nursing and indeed the property industry. Because most of those people cannot achieve salaries which will qualify for Sarp they need affordable accommodation and co-living units can be cheaper than apartments.
Domestic Focus
Are Shop Conversions A Secret Weapon in the Housing Shortage?
With a severe lack of housing in Ireland, but a glut of abandoned shop buildings, the conversion of these units into residential spaces seems like a nobrainer, particularly when combined with the Vacant Property Refurbishment Grants. Here, a case study from IPAV Member Padraic Davis shows how the careful conversion of one retail unit has created four new homes in Longford.
“IN
the heart of Longford Town, a once derelict building in the bustling Market Square has been expertly transformed, turning an abandoned space into a vibrant part of the community. Originally housing a retail unit on the ground floor and a three-bedroom townhouse above, this four-storey building had fallen into disrepair by the time it was put on the market. Crumbling brickwork, boarded-up windows, and an overgrown yard at the rear spoke of years of neglect. Despite this, the building’s prime location and development potential made it an appealing project for the right buyer.
The property had once been a busy mixed-use space: a retail unit occupied the ground floor, while the upper levels provided spacious residential accommodation. However, by the time it was sold, it was in dire need of repair. The townhouse on the first and second floors required extensive work, and the rear yard, measuring 35 meters deep, was neglected but offered significant development possibilities. The building’s central location in Market Square, combined with its substantial site, made it a prime candidate for a thoughtful redevelopment. Given the building’s prime location and the size of the site, the property attracted interest from a variety of buyers, including individual investors and developers. Many were drawn by the opportunity to restore a property in
the heart of a growing town, while others saw the potential for both residential and commercial uses. The substantial rear yard and the building’s mixed-use history made it an ideal candidate for a redevelopment that could meet the rising demand for modern, quality living and working spaces in Longford Town Centre.
The successful buyer saw the potential to combine modern functionality with the building’s period features. The redevelopment began with careful restoration and preservation of the exterior. The creatively refurbished building provided much-needed residential properties. It comprises one three-storey, three-bedroom townhouse, made from the original residential space. The shop was extended and
converted into a ground floor, twobedroom townhouse, and the rear sheds were converted into two, one-bedroom townhouses. All are heated by an air-to-air system.
The conversion has had a significant impact on Longford’s Market Square and the surrounding area. The restoration of the building’s façade and the creation of additional modern living spaces has contributed to the revitalization of the town centre, attracting new residents. This building’s transformation from a derelict property to 4 new homes showcases the potential of thoughtful development in shaping the future of a community.”
Knowledge bank
The Holy Grail of Property Management
Kay McGuire MIPAV looks at the different aspects of the management business and the importance of each to ensure you’re doing the best job for your clients.
As one of the four Property Services Regulation Licenses, D Licence Holders provide services in general as Management Agents to Owners Management Companies (OMC’s). This type of service is something that has changed considerably in recent years, not only with licensing but also with the level of services provided and the expectations on agents now from Boards of Directors and Members within OMC’s.
In recent years, many agents have reported that the role has become more and more difficult and less attractive to graduates, resulting in agencies struggling to find staff. However, the IPAV Level 6 Higher Certificate in Business in Real Estate, Valuation, Sale & Management and the Apprenticeship Programme has created more opportunities to recruit staff. While licencing of Property Services Providers was introduced in 2012, the Traffic Lights System provided by the Regulator notes there are some aspects of the job in Management that office staff can carry out without being licenced.
Costs of running all businesses have gone up significantly in recent years. We are no different – additional wage costs for both licensed and unlicensed personnel, utility costs, licensing costs, additional costs of sick leave and additional bank holiday entitlements for staff, transport costs, IT costs etc. But despite all of the above, management agents are expected to provide management service at the same cost as in previous years.
We must factor in all our true costs, be transparent and honest about them and value ourselves and the service we provide. If we don’t value ourselves, no one will.
I would also encourage all D Licensed Members to come to any IPAV events that you see coming up, engage with us and allow us to support you in whatever way we can.
Aspects of Management
1 Pricing
When tendering for the management of a development, it is hugely important to be very clear what services the OMC is requesting and requires. Make sure the Board of Directors are aware what is and isn’t included in your quote. Personalise your Letter of Engagement to the development and to the exact services you are agreeing to provide to the OMC.
2 Transparency
Be very transparent about the costs of extras such as additional meetings, supervision of large pieces of work etc. Ensure you are clear about fees for MUD replies and any other service that in some cases may be of particular interest to the OMC Board of Directors.
3 Honesty
Be clear with the Board as to what exactly is involved in being a management agent and price accordingly, but fairly.
4 Networking
In recent years, I have become far more aware of the amount of networking that goes on between management agents, and the value of this networking. Networking provides you with contacts for other management agents throughout the country, which is invaluable when you are seeking information on some items of work you may not be that familiar with. While you might see other agents as competition, don’t be afraid to ask them questions, as they are a fantastic source of information. We could assist each other greatly in a reciprocal way so easily. Completing CPD is another great way of keeping up to date and joining free webinars given by the Department of Housing can be very informative.
Home
Whether you are looking to buy, sell or you are happily staying put, be inspired by Property & Home magazine in Saturday’s Irish Examiner.
• We bring you through the keyhole of a range of properties on the market each week, from rural retreats to urban sophistication.
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Plus antiques and fine art with a diary of upcoming events not to be missed.
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Inour profession as auctioneers and valuers, we are regularly retained to value agricultural holdings for a variety of reasons, including potential sale, probate, transfers, borrowing or restructuring. Occasionally, we are also asked to arbitrate on the possible division or financial break up of a holding. All very responsible instructions that require due consideration, knowledge, and in particular expertise in this asset type. When accessing the value of holdings, we take a number of factors into consideration. Land quality and soil types are big factors in influencing Tom Crosse FIPAV explains
values, with free draining arable land the most valuable. Not uncommon now to see intending land purchasers walk land with a shovel and requesting permission from the selling agent to take away samples for testing. There is a Teagasc Soil website that covers the entire country and that will provide valuers with the necessary information for buyers, or to include in valuation reports. Other influencing factors on value include location and how accessible a holding is for everyday farming purposes.
The topography of a holding is also important and good road frontage obviously has a positive impact on values. Land close to a village or town could have site potential which again may enhance value. Such land may be zoned and again should be
When valuing land the client always wants to understand the rationale around the valuation figure. We tend to split out different headings in our reports which include the actual land, out offices, residence and single farm payment if applicable.
reviewed in terms of the land tax (RZLT) and its implications. This has become very topical in recent times with the recent budget confirming its introduction in 2025. Many such landowners and in particular active farmers are indicating that they will apply to have their lands de-zoned, which in turn should eliminate the need to pay the land tax.
Piped water or a private well is very important as new preventative regulations now emerge around stock availing of water in local streams or rivers.
As building inflation has rocketed in recent years, the presence of good outbuildings has become hugely important in any valuation or acquisition. Such facilities can add much value to any holding and can avoid the need for any capital outlay post purchase.
Right of ways are very contentious and always have a very negative effect on values. Very important that these are always cross checked with most registered right of ways self-evident on the land direct website.
In recent years it is our view that the price gap between good and poor land has widened, with most aspiring buyers now opting for better quality land all be it at higher prices. Marginal land is underpinned by forestry prices with demand generally slow.
Quantum of land in any holding can influence value. The larger holdings with big
price tags in most cases have limited suitors, with smaller lots always more attractive and easier to fund. Smaller parcels therefore tend to make more per acre.
Most holdings have Single Farm Payments attaching which again bring added value. In this regard they are worth approximately 2.5 times their annual value. When valuing holdings in particular for borrowing purposes, in many cases the Principal Private Residence is excluded from the security. This can very often have a very negative impact on value as effectively the house more often than not is in the centre of the holding and adjacent to farm buildings. This should be flagged in any report and it could mean that difficulty could ensue in trying to dispose of such a holding.
When valuing land the client always wants to understand the rationale around the valuation figure. We tend to split out different headings in our reports which include the actual land, out offices, residence and single farm payment if applicable.
CONNECT EVENTS
Highlights of the IPAV calendar
IPAV European Valuation Conference & Trade Expo
RDS, Dublin 4
5th November 2024
We were delighted to welcome a record number of attendees to our recent European Valuation Conference & Trade Expo and sincerely appreciate everyone’s time and participation. We extend our sincere thanks to all the exhibitors and speakers who shared their expertise, making the event both exceptionally engaging and educational, while also providing valuable networking opportunities for all.
ABOVE: Lisa Keogh
LEFT: Ivan Yates
ABOVE: Jeremy Moody
ABOVE: Deirdre Phelan, Margaret Fogarty & Caroline Quinlan
ABOVE: Philippe Guillerm RIGHT: Cathal Lawlor
ABOVE: Pat Davitt
LEFT: Linda Christopher and Julie Breen RIGHT: Jim Power
ABOVE: Alan Loughrey, Ann Marie Meehan, Emma Gill & Eamon Hickey RIGHT: Patricia Kuczynska BELOW: Emmet Creighton
ABOVE: Jim O’Callaghan
RIGHT: Lisa Kearney.
BELOW:
ABOVE: Marguerite Stafford, Pat Davitt and Lisa Kearney
BELOW: Seamus O’Keeffe, Margaret Daly and Desmond Daly
IPAV Member’s Lunches 2024
Westbury Hotel, Dublin, 29th November and Clayton Hotel Cork, Cork City, 6th December We extend our heartfelt thanks to all members and guests who joined our member’s lunches in Dublin & Cork. These festive lunches give us a wonderful opportunity to celebrate together, while also supporting charities close to our hearts. We are deeply grateful for the generosity shown by members and guests in supporting our chosen charities. In Dublin, the lunch was hosted in aid of Multiple Myeloma Ireland and in Cork, in aid of The Children’s Grief Centre. Thank you to everyone for making the lunches very meaningful and a great success.
ABOVE: Richie Dunlea, Der O’Riordan, Joey Sheahan, James Murphy, Kevin Barry and Terence O’Leary
RIGHT: Sasha Gosling and Mark Gosling
ABOVE: Mairead O’Keeffe and Lisa Kearney
ABOVE: Gordon Kearney, Lisa Kearney, James Kearney and Pat Kearney
ABOVE: Jakub Polanski and Fiona Kennedy
ABOVE: Sean Naughton and Tony Forte
ABOVE: Lisa Mulholland and Paul Muldoon
Clare Shaw, Cormac Cahill, Sarah Cullen, Molly Carlton and Fintan McGill
ABOVE: Senator Aidan Davitt, Maeve Hogan, Lisa Kearney and Marc MacSharry
RIGHT: Kay McGuire and Paul Campbell
ABOVE: Ruth Dargan, Ken MacDonald, Paula Dargan and James Meagher
BELOW: Professor Eóin Tiernan, Lisa Kearney and Pat Davitt
ABOVE: Jane Kirrane, Christine Desmond, Kyle Kennedy, Adrianna Hegarty, Deirdre Barry, Niamh Hegarty, Maria Lehane and Sandra McGrath
What’s your take on the property market going forward?
How would you describe your overall outlook for the property market in the coming year?
What do you see as the biggest challenge for the property market in the coming year?
“A ordability for young buyers. Supply of properties”
Andrew Kiersey, Kiersey Walker & Associates
“The continued lack of supply for first time buyers is alarming. Young people are having to turn to family to top up already exorbitant mortgages for their first home. The rental market is equally in tatters with hundreds of people applying for a rental property up to two hours from where they work in order to secure their own living space. I worry about the mental health of the young, now becoming not so young first time buyers of Ireland who can neither buy nor rent.”
Deirdre Bradley, Bradley Homes
“The Help to Buy scheme, while wellintentioned, has inadvertently inflated house prices, making home ownership even more elusive for first-time buyers. For renters already stretched thin trying to keep up with rising living costs, saving a 10% deposit isn’t just challenging, it’s nearly impossible. Instead of bridging the gap, the scheme has widened it, leaving many stuck in a cycle where buying a home remains out of reach.”
Shaun Frayne, Carlow Property Management
“Having su icient skilled labourers/ workers to complete new property builds. Rising costs of building materials making new builds very expensive to build/purchase. Not having su icient rental stock for the demand.”
Tracey
Reidy, Resource Property Management
“Due to a continued downturn in supply, there has been significant pressure in the second hand market, with double digit growth over the past 12 months. This is unsustainable in the long term. Building costs are also too high, and this is not easing the pressure. Another concern is what e ect Trump will have on the Irish economy. If the economy takes a turn it will likely have a knock on e ect.”
Mark Mulholland, Property Partners Mulholland
Each quarter, we ask our members a question and get the inside scoop on your thoughts and opinions on a hot topic. As 2024 draws to a close, we wanted to look forward to the coming year, and see what you think the property market will look like in 2025. Here are the results…
If you are buying a security service your provider must be licensed by the PSA even if their primary business is not security.
Electricians, Property & Facilities Management Companies, and others providing security services must be licensed.
Using unlicensed providers puts your business at risk as you could:
•Face Prosecution
•Invalidate your insurance cover
•Compromise the safety of your staff and customers
To ensure that your security provider is licensed with the PSA visit www.psa-gov.ie
