Published: Thursday, 1st July, 2010 4:00pm

More financial headaches for property owners

by Editorial Department

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Leaving a property vacant just might not save money after all. Until now, no rates were calculated on properties which were lying idle. But a new decision by the Assembly taking effect from October next, will mean that all properties, whether occupied or vacant will still be liable for rates.

Obviously the Finance Minister needs to draw in as much money as possible to avoid further cutbacks in public expenditure but the decision will horrify many developers caught up in the property crash and recession, as well as those who find it difficult to sell a second home and farmers with derelict homes on their land.

It's been calculated by The Impartial Reporter that the decision could net the Assembly almost £2 million a year, based on a conservative bill of £500 per property and based on a figure of 3,655 empty houses. Fermanagh is believed to have the highest number of empty homes after Belfast.

This could lead to additional burdens on people as the squeeze on public finance continues in the year ahead.

Of course some of the rates accrued from such a move would be handed back to Fermanagh Council, in effect reducing the district rates burden on ratepayers in the county.

With many younger people wanting to get on the property ladder, perhaps there can be a scheme devised which could help compromise both parties, reducing the property burden on developers or builders and yet making it affordable to first time buyers to get a home of their home.

The overall problem is securing a mortgage and the government needs to do more to encourage the banks to lend more.

Without loans and mortgages, we will still be in a stalemate situation, waiting for the recession to pass by and cautious deals made.