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The Journal
16-07-2025
- Business
- The Journal
Property prices increased by close to 8% in 12 months to May
PROPERTY PRICES INCREASED by 7.9% in the 12 months to May, with the median price of a home costing €370,000. That's according to the latest Residential Property Price Index published today by the Central Statistics Office (CSO). The 7.9% increase in the year to May is an increase on the 7.6% rise in the 12 months to April. Property prices in Dublin rose by 6.9%, while prices outside Dublin were up by 8.7% when compared with May 2024. The median price of a home in the 12 months to May was €370,000. The highest median price for a dwelling was €670,000 in Dún Laoghaire-Rathdown, while the lowest median price was €186,000 in Leitrim. In the 12 months to May, house prices in Dublin rose by 6.8% while apartment prices increased by 7.2%. The highest house price growth in Dublin was in Fingal, at 9.3%, while Dún Laoghaire-Rathdown saw a rise of 5.1%. Outside Dublin, house prices were up by 8.9% and apartment prices rose by 6.7%. The region outside of Dublin that saw the largest growth in house prices was the Border counties of Cavan, Donegal, Leitrim, Monaghan, and Sligo at 11.1%. At the other end of the scale, the South-East (Carlow, Kilkenny, Waterford, and Wexford) saw a 7.7% rise. Meanwhile, the CSO noted that Dublin residential property prices are 5.3% higher than their February 2007 peak, while residential property prices in the rest of Ireland are 20.5% higher than their May 2007 peak. Advertisement Property prices nationally have increased by 165% from their trough in early 2013. In May, some 3,824 dwelling purchases by households were filed with the Revenue Commissioners, at a total value of €1.6 billion. These purchases were made up of 2,913 existing dwellings and 911 new dwellings. Revenue data also shows there were 1,388 first-time buyer purchases in May. 'Bleak outlook' Brokers Ireland, the leading representative body for insurance and financial brokers n Ireland, said that rising property prices indicate that the 'outlook is bleak for prospective buyers, those who need to move from an existing home, and indeed renters, given the shortage of supply'. Rachel McGovern, Deputy Chief Executive at Brokers Ireland, pointed to recent ESRI data that forecast 33,000 united this year and around 37,000 next year. Last year, the government missed its housing target by roughly 10,000 units, with 30,330 new homes built. McGovern said these missed targets are 'very worrying'. 'It's hard to envisage how any new housing plan by Government can turn this around in the short-term,' said McGovern, who added that doing so will require 'dramatic and unprecedented' measures. Meanwhile, McGovern remarked that a consequence of the increase in property prices is that those who need mortgages are taking on 'ever larger levels of debt'. 'The Central Bank mortgage measures are not and could never be sufficient to deal with this situation,' said McGovern. 'Parents are digging very deep into their resources to help first-time buyers to get a foothold in the market.' McGovern said increased supply is the 'only solution' and that the Government's new housing plan 'must address the impediments in zoning, planning and infrastructure, and be prepared to face up to and confront any vested interests standing in the way'. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
BreakingNews.ie
16-07-2025
- Business
- BreakingNews.ie
'Outlook bleak' as house price rises show no sign of slowing
The "outlook is bleak" for home buyers as the latest official data showed residential property prices rose at an annual rate of 7.9 per cent in May, up from 7.6 per cent the previous month. The comment from Brokers Ireland came as the Central Statistics Office confirmed that home prices in Dublin rose by 6.9 per cent in May, while those outside the capital jumped 8.7 per cent. Advertisement The median, or midpoint, price of a dwelling purchased in the 12 months to May 2025 was €370,000. The highest median price was €670,000 in Dún Laoghaire-Rathdown, while the lowest median price was €186,000 in Leitrim. The most expensive Eircode area over the period was A94 (Blackrock, Dublin) with a median price of €770,000, while F45 (Castlerea, Roscommon) had the least expensive price of €150,000, the CSO said. Rachel McGovern, deputy chief executive at Brokers Ireland, said the latest figures are bleak for prospective buyers, given the shortage of supply. Ireland Government's housing policies have left it 'tied i... Read More "The latest ESRI data forecasting just 33,000 [new housing] units for 2025 and 37,000 in 2026, well below Government targets, is very worrying. Advertisement "It's hard to envisage how any new housing plan by Government can turn this around in the short-term," she said, adding that it will take "dramatic and unprecedented" measures. Trevor Grant, chairman of the Association of Irish Mortgage Advisors, said prices continue to rise faster than incomes, pushing homeownership further out of reach for many. "With supply still falling well short of demand, this imbalance is not likely to correct itself anytime soon," he said.
Business Post
25-06-2025
- Business
- Business Post
Strategic planning could save you nearly €1 million for your future
With the right advice, business owners can grow wealth and reduce their tax burden. In our client's scenario below, we believe seeking our advice was worth €904,000, as it generated €460,000 in additional pension growth and €444,000 in tax savings (including income tax, capital gains tax and corporation tax). Power of financial advice 'Time is money' is a common statement. However, the reality is that today is that smart strategy can drive real results, making expert financial advice essential. According to the 2023 Value of Advice Report by Brokers Ireland: ●Individuals who received financial advice had 60% more in savings and investments (€71,332 vs. €44,754). ●Their pension pots were 55% larger with financial advice, which could mean having €1,300,000 compared to €840,000, a difference of €460,000. ●58% of those who received advice felt more confident and in control of their finances. Tax-efficient wealth extraction Taking money from your business isn't as simple as a salary or dividend; these methods often come with high tax costs. ●Salary: Subject to income tax, pay-related social insurance (PRSI) and universal social charge (USC), totalling up to 52%. ●Dividends: Taxed up to 52%, including PRSI and USC. ●Company assets for personal use: Using company funds to purchase a car for personal use, for example, can trigger Benefit-in-Kind (BIK) and a charge of up to 30%. More efficient options include: ●Pension Contributions: A company can contribute to a pension with no PRSI, USC or BIK. Pension grows tax-free, and contributions are tax-deductible. You can withdraw 25% as a tax-free lump sum when you retire. Since 1 January 2025, PRSA contributions are capped based on salary. ●Hiring Family Members: You can employ your spouse or adult child and lower your tax bill, with their salary and pension contributions reducing corporation tax. ●Employment Investment Incentive Scheme (EIIS): This benefits companies by offering up to 40% tax relief on investments in qualifying Irish businesses, up to €250,000 (four years) or€500,000 (seven years). Exit efficiently If you consider stepping away from your business, having a strategic tax plan can reduce capital gains tax (CGT) through reliefs such as: ●Entrepreneur Relief: This relief can reduce CGT from 33% to 10% on the sale of qualifying business assets, up to a €1 million lifetime limit. ●Retirement Relief: You get full relief when selling at 55–65. After that, it's capped at €3 million. What this looks like in real life Our client Tom* runs a successful business, earning €100,000, with his spouse earning €75,000 as an employee of the business. Tom consulted us to structure the transaction in a tax-efficient manner prior to selling the company for €1.5 million. We advised them to contribute 20% (max allowable by age) of their salaries to PRSAs, €20,000 for Tom and €15,000 for his spouse, resulting in €14,000 in annual income tax savings. Additionally, their company paid 100% of their salaries as employer PRSA contributions, which resulted in annual Corporation Tax savings of almost €22,000. In addition, we helped them save €58,000 in CGT annually on the planned business sale. Combined, these created €80,000 in annual savings, totalling €240,000 over three years. Smart planning boosts wealth When Tom sold the business, he qualified for Entrepreneur Relief, reducing CGT on the first €1 million from 33% to 10%, resulting in a further saving of €230,000. After taking our investment advice, Tom's pension portfolio grew from €840,000 to €1.3 million, an increase of €460,000, in line with the 55% uplift shown in industry research. In total, the strategy delivered €444,000 in tax savings and €460,000 in pension growth, €904,000 overall, highlighting the impact of timely, expert financial planning. Building a business takes dedication, and protecting its value takes smart planning. *Disclaimer: 'Tom' is a fictional client used for illustrative purposes only. The figures and outcomes shown are based on indicative scenarios and should not be taken as financial advice. Individual circumstances vary. Please seek personalised advice from a financial advisor. If you're a business owner looking to grow your wealth, get a quote on With expert guidance from True Wealth, you can protect and maximise what you've worked so hard to build.
Irish Independent
16-06-2025
- Automotive
- Irish Independent
Insurance brokers accused of ‘inherently unfair' commission structure that favours higher premiums
The Alliance for Insurance Reform has questioned why most insurance brokers charge a fee that is based on a percentage of the cost of a policy. It claimed that the higher the premium a broker will secure for a consumer from an insurer, the more money the broker will make in commissions. It said broker commissions account for 'an increasing proportion of the overall cost of insurance'. It said other professions are precluded from charging a fee based on a percentage of the product or services and said this is something that also needs further examination. In a submission to the Department of Finance, as part of the public consultation on a new Action Plan for Insurance Reform, the Alliance for Insurance Reform said: 'Many brokers now charge a fee based on a percentage of the cost of the policy. This is inherently unfair to consumers as the 'worse' the premium they secure for them, the more money they will make.' The Alliance called for a detailed examination of the brokerage market in Ireland to be carried out, with strong consumer input. Commissions paid to brokers for selling motor insurance were 14pc of the premium in 2023, according to the Central Bank of Ireland's 'Private Motor Insurance Report', issued last October. A separate Central Bank report found the average motor premium is now €616. This means brokers earn €86 on the average motor premium. Both motor and home insurance costs have been rising now for months. Asked for a response, Brokers Ireland, which represents the sector, said the claim that brokerage charges account for 'an increasing proportion of the overall cost of insurance' lacks a clear evidential basis. It said the Central Bank's Consumer Protection Code mandates full disclosure of fees and commissions at the point of sale. Brokers Ireland said consumers are fully informed of how brokers are remunerated. 'Furthermore, insurance brokers typically work to reduce overall insurance costs for consumers by sourcing the most competitive and appropriate cover,' it said. It said the suggestion that percentage-based commissions are 'inherently unfair' misrepresents how insurance intermediation works. 'Commission-based models are a long-standing and internationally accepted form of broker remuneration, aligned with the interests of consumers,' it said. 'Insurance brokers are incentivised to deliver appropriate cover, value for money and ongoing service – all of which drive client retention and trust.'
Irish Independent
11-05-2025
- Business
- Irish Independent
Brokers urge rent tax breaks to spur empty nesters to ‘downsize' larger homes
The introduction of 'a rental offset scheme for income-tax purposes' would target 'empty-nesters' to free up large homes. Such a scheme could incentivise people who are 'reluctant' to move but who may live in a four-bedroom house where they only use one bedroom, said Brokers Ireland in a submission to Finance Minister Paschal Donohoe. Under such a scheme the rent paid on the new smaller property would be offset against the rental income they receive by renting out their own home. This would mean that such a person would only pay tax on the difference in rental levels, said the submission from the organisation which represents over 1,200 insurance firms and financial brokers across the country. They may be reluctant to sell their home and buy a smaller one but they may be interested in renting a smaller property 'Many older people who own their own homes may live in a property which is too large for their current needs, particularly where children have moved out,' said the submission. 'They may naturally be reluctant to sell their current home and buy a smaller property, but they may be interested in renting a smaller property to downsize to if they can let out their own home at a higher rental level,' it said. Rachel McGovern, deputy chief executive at Brokers Ireland, said the group was also proposing a series of changes to what she labelled 'discriminatory tax policy' that was leading to heavy losses for Irish consumers. 'When account is also taken of the fact that a 41pc tax rate applies on gains from life-assurance savings and investment policies in contrast to the Capital Gains Tax rate of 33pc applying to stocks, shares and property, one can see that the situation is particularly costly,' she said. The group has also demanded the abolition of the 1pc Life Assurance Premium Levy, as was recommended last October by the Department of Finance's own review of the Irish funds industry. The group is also seeking a reduction of the life-assurance exit tax rate from 41pc to 33pc, the CGT rate This was promised in the Programme for Government but there is widespread concern that many post-election promises will fall by the wayside because of concerns over the impact of tariffs and trade issues on the economy. The levy, which amounts to €33m per annum, was introduced in April 2009 as a temporary measure in April 2009 to plug a major hole that emerged in the public finances during the financial crisis. 'The continued application of the 1pc levy on life-assurance premiums distorts the personal investment market in Ireland,' it said. The charge was 'unique and discriminatory' to savings and investments made in life-assurance policies, it said. The group is also seeking a reduction of the life-assurance exit tax rate from 41pc to 33pc, the CGT rate, a measure recommended in the funds review. Another measure sought ahead of this summer's budget is the introduction of a reduced life-assurance exit tax incentive rate of 25pc for 'responsible investment products' to stimulate increased appetite for funds that prioritise environmental and social issues amongst the Irish public.
