The Institute of Professional Auctioneers and Valuers (IPAV) is urging the Irish government to introduce stamp duty exemptions for first-time buyers purchasing second-hand homes, a move designed to enhance housing market accessibility and address affordability challenges facing young purchasers across Ireland.
The professional body representing independent auctioneers and valuers nationwide has made the formal recommendation as part of broader discussions around housing policy reform. Currently, first-time buyers in Ireland enjoy stamp duty exemptions only when purchasing newly built properties valued up to €500,000, creating what industry professionals describe as a significant market distortion favouring new builds over existing housing stock.
Under existing regulations administered by the Revenue Commissioners, first-time purchasers acquiring pre-owned residential properties must pay stamp duty at one percent on values up to €1 million, with two percent applying to any portion exceeding that threshold. This taxation structure effectively adds thousands of euros to the upfront costs facing those attempting to enter the property market for the first time, particularly in Dublin and other urban centres where property values remain elevated despite recent market adjustments.
The Institute of Professional Auctioneers and Valuers argues that extending stamp duty relief to second-hand property purchases would create a more balanced housing market whilst providing genuine financial relief to first-time buyers who often struggle with deposit requirements and associated transaction costs. The organisation maintains that such a policy shift would stimulate activity across the broader residential market, particularly in suburban and rural areas where second-hand properties constitute the majority of available stock.
Irish housing policy has increasingly focused on stimulating supply through various incentive schemes, including the Help to Buy scheme which provides tax rebates for first-time purchasers of newly built homes. However, property professionals contend that insufficient attention has been directed toward making existing housing stock more accessible to first-time buyers, who represent a crucial segment of market demand. With construction output still recovering and new home completions falling short of demographic requirements, facilitating access to second-hand properties could provide immediate relief to purchasers currently priced out of new developments.
The Central Bank of Ireland’s macroprudential lending rules, which limit loan-to-value ratios and loan-to-income multiples, already constrain borrowing capacity for first-time buyers. When combined with stamp duty obligations on second-hand purchases, these regulatory requirements create substantial barriers to homeownership for younger workers and families. Industry analysts suggest that removing or reducing stamp duty on qualifying purchases could effectively lower the entry threshold by several thousand euros, making homeownership achievable for households currently on the margins of affordability.
From an economic perspective, increased activity in the second-hand housing market generates positive spillover effects throughout the Irish economy. Property transactions typically stimulate spending on legal services, surveying, home improvements, furnishings, and related sectors. Enhanced market liquidity also facilitates labour mobility, allowing workers to relocate for employment opportunities without excessive financial penalty, a factor particularly relevant given Ireland’s concentrated employment centres in Dublin, Cork, and Galway.
The Department of Finance would need to assess the fiscal implications of any stamp duty reform, balancing revenue considerations against potential economic benefits. Stamp duty on residential property transactions contributes significantly to Exchequer receipts, though the precise revenue impact would depend on implementation details such as value thresholds and eligibility criteria. Proponents argue that increased transaction volumes and broader economic activity could partially offset direct revenue reductions.
This latest policy recommendation from the auctioneering sector adds to ongoing debates about housing affordability and market access in Ireland. With property prices stabilising but remaining elevated relative to historical norms and household incomes, stakeholders across the industry continue pressing for innovative policy solutions that address both supply constraints and demand-side affordability challenges. Whether government officials will embrace stamp duty reform for second-hand purchases remains uncertain, though the proposal reflects growing recognition that supporting first-time buyers requires a multifaceted approach extending beyond new construction incentives alone.
