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House price inflation is accelerating, according to the CSO's Residential Property Price Index.
New data revealed there has been a 12.6% rise in house prices across Dublin in the 12 months to July.
Fianna Fáil Seanad Group Leader, Senator Catherine Ardagh, has warned that the property tax revaluation cannot be used as an excuse to gouge hard pressed Dublin home owners for hundreds of millions in additional revenue, and has called for the Minister to clarify his intentions in relation to the Local Property Tax in Budget 2018.
She said: "This was the second highest monthly rate of house price inflation since the CSO began recording residential property data in 2013. The CSO have also introduced a technical change to how the index is compiled to make it more representative of house price changes across the country.
"The Local Property Tax (LPT) was introduced in 2014 and is based on the self-assessed value of properties in May 2013. The Department of Finance have announced that a revised valuation will be undertaken in 2019.
"The date of the last property tax valuation in May 2013 coincided with the lowest level which property prices reached in the recession. Since then, property values have recovered strongly, with the growth of which far out-stripping increases in disposable income levels.
"In Dublin, for example, the CSO residential property index indicates that average residential prices have risen by 70% since May 2013. For a house valued in 2013 in Band 4 (€250,000 – €300,000) this means that their moving to Band 8 and property tax would rise by €270.
"House prices in Dublin City have risen even faster in value during the period, increasing by 78% on average. This could push many home owners in to band 3 or 4 levels. Each one band increase is equivalent to a €90 tax hike.
"Unless the issue is addressed the total tax take from the LPT could increase from an estimated €460m this year to €760m. This is simply unacceptable at a time when many family budgets are already severely stretched."
(CD/MH)
