Dáil Éireann Debate, Tuesday - 5 July 2022
161. Deputy Colm Burke asked the Minister for Finance if consideration will be given to introducing a vacant property tax to reduce the number of vacant properties; and if he will make a statement on the matter. [36132/22]
Amharc ar fhreagraThe Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022. The Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information in relation to the occupancy status of residential properties including, where unoccupied, the duration and reason for this, in the Local Property Tax (LPT) return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to assess the merits and impact of introducing a Vacant Property Tax.
In considering the case for such a tax, it is important to have a sound understanding of the quantity, locations and characteristics of long-term vacant properties. It is also essential to identify the reasons for vacancy, and whether this is long or short-term in nature. There may be genuine and acceptable reasons for vacancy such as refurbishment work, the temporary absence of the owner for medical reasons or pending the grant of probate for a deceased person’s estate.
The LPT returns included questions such as whether a property is vacant, the reasons for the vacancy and if the period of vacancy exceeds 12 months. It should be noted that LPT applies only to habitable residential properties, and derelict or uninhabitable properties are not captured under the LPT system. Revenue have completed a preliminary analysis of the LPT returns received to date which has been shared with my Department. The results of the preliminary analysis suggest that levels of vacancy are low across all counties.
According to the preliminary Census figures release two weeks ago, 166,752 vacant dwellings were recorded in Census 2022. This is a decrease of 9% compared to 2016 (-16,560, down from 183,312). It is an even further reduction (12%) compared to 2011, when 230,056 vacant dwellings were recorded – giving a rate of 7.8%. it should be noted that this is a point in time measure of vacancy relating to the weeks either side of Census Night and is not intended to be a measure of long term vacancy or that these properties are available for re-use. These homes may well have been occupied again a few weeks after Census Night.
I note the total number of vacant properties notified by property owners to Revenue is not directly equivalent to the total number of vacant dwellings counted by Census enumerators on Census Night. This is primarily due to the difference in data collection methodology. However, both sets of data are important in considering the case for a tax on vacant residential property.
I will be considering this issue in consultation with colleagues before reverting to Government with proposals on the appropriate response. I understand Revenue intends to publish a profile of the occupancy data from the LPT returns shortly.
Addressing vacancy and dereliction, and maximising the use of the existing housing stock, is a priority objective of the Government, as evidenced in the Housing for All strategy where one of the four pathways in the plan is specifically dedicated to this area.
