It's impossible to say if councils are providing better local services

'Councils don’t have the resources to embark on a building programme' Stock photo: PA

Paul Melia

The burden of the property tax is among the most unfair levies introduced during the recession. A flawed model based on property prices, as opposed to the underlying value of the land the property sat on, it penalised people living in the cities and didn't result in improved public services.

And unlike in other countries, the tax does nothing to dampen price increases. As economist and author of the Daft.ie report Ronan Lyons says, in countries with higher property tax rates than the 0.18pc employed in Ireland, buyers are less likely to add an extra €10,000 to their bid without thinking, because they add significantly to their annual tax bill.