New measure will encourage dereliction
The new Vacant Homes Tax has been set far too low, according to the Social Democrats Housing spokesperson Cian O’Callaghan.
Commenting on Budget 2023, Deputy O’Callaghan said:
“The new Vacant Homes Tax is too weak to work. This tax must be set at a much higher rate to bring vacant homes back into use.
“The Vacant Homes Tax equates to just 0.3 percent of the value of a property, which is far too low. In our alternative budget, the Social Democrats called for this tax to be set at 10 percent, with a number of fair exemptions.
“There are almost 90,000 vacant homes in Ireland. We must bring these properties back into use for the tens of thousands of people who are in dire need of housing.
“Another flaw is that the Vacant Home Tax doesn’t apply to derelict properties. This is a big mistake. Those who allow their vacant properties fall into dereliction shouldn’t be given an opt-out of this tax.
“This is a perverse incentive that will encourage dereliction. As things stand, the existing derelict sites levy is rarely collected by local authorities and is highly ineffective.
“The new Vacant Homes Tax is typical of this Government’s approach to tackling the housing crisis – it is lacking in both ambition and urgency.”
September 27, 2022