Dáil Éireann Debate, Thursday - 22 September 2022
129. Deputy Richard Boyd Barrett asked the Minister for Finance if he is planning any further taxation measures in Budget 2023 to bring the large numbers of vacant and derelict homes into use given the severity of the housing crisis; and if he will make a statement on the matter. [46266/22]
View answerAddressing vacancy and dereliction, and maximising the use of existing housing stock, is a priority objective of the Government. Housing for All outlines a suite of measures aimed at addressing vacancy in a coordinated, robust manner, and specifically includes an action for the Department of Finance to collect data on vacancy with a view to introducing a vacant property tax.
Provisions included in the Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information on vacant properties in the Local Property Tax return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025.
The preliminary analysis of this information which was published on 6 July 2022, indicates that levels of vacancy amongst LPT liable properties are low across all counties and lie within the range that is considered to be in line with a functioning housing market. The data also indicates that many of the reasons given for vacancy are genuine and acceptable reasons for temporary vacancy, for example, where a property is for sale, between lettings, undergoing refurbishment, where the property is subject to a probate application or other legal proceedings, holiday homes, or in cases where the owner is in long-term care.
In Housing for All, the Government has set out a suite of incentives available to encourage re-use of properties and increase the supply of housing. However, in addition, the Government is committed to exploring options around sanctions for non-use of residential property so that there is some penalty for leaving a property vacant for a prolonged period without a genuine reason at a time where there are pressures in terms of housing supply. As I have said on many occasions, I consider that the primary objective of a vacant residential property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues.
The Revenue analysis provides a basis for my Department to assess the merits and impact of introducing a Vacant Property Tax, and how best such a tax might be designed. This work is well underway and I intend to bring forward proposals on a targeted measure that achieves an appropriate balance between incentivising owners of vacant habitable residential properties to bring their properties back into use, and ensuring any such tax does not arbitrarily or excessively penalise home-owners in a discriminatory way.
Regarding dereliction, I am informed by the Minister for Housing, Local Government and Heritage that the existing Derelict Sites Act imposes a general duty on every owner and occupier of land to take all reasonable steps to ensure that the land does not become, or continue to be, a derelict site. The Act also imposes a duty on local authorities to take all reasonable steps, including the exercise of appropriate statutory powers, to ensure that any land within their functional area does not become, or continue to be, a derelict site. These powers include the power to prosecute owners who do not comply with notices served; making compulsory land purchases and carrying out necessary work at charge to the owners for the cost.
I am advised that the Department of Housing, Local Government and Heritage continues to liaise with local authorities on the implementation of the Act with a view to improving its effectiveness. In this regard, a review of the Act was initiated in November 2021 and initial submissions have been sought from local authorities on potential improvements to the legislative provisions and the way they are applied. I am further advised that the Department of Housing, Local Government and Heritage has established a focused working group to progress this matter further.
Finally, as the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decision.
