Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Government is acutely aware of the difficulties in the housing market and the challenges this continues to present for many people and families as they seek a new home, often their first.

With regard to vacant properties, the need to address vacancy and to ensure all viable housing stock is being used is a priority for the Government. In Housing for All, the Government has set out a suite of incentives to address vacancy and the efficient use of existing stock. A vacant homes tax was announced in budget 2023 and legislated for in the Finance Act 2022. This tax is now set at five times the property’s existing base local property tax rate. The vacant homes action plan outlines the significant progress that has been made in addressing vacancy along with the actions that are being pursued to return as many vacant properties as possible to use. A range of schemes and supports have been implemented by the Government to address vacancy and bring properties back into use. These include the vacant property refurbishment grant, the repair and leasing scheme, the buy and renew scheme, the urban regeneration development fund and the compulsory purchase orders activation programme. All local authorities now have a dedicated vacant homes officer, funded by the Department of housing, ensuring a dedicated focus on tackling vacancy.

With regards to dereliction, I understand the Department of Housing, Local Government and Heritage continues to liaise with local authorities on the implementation of the Derelict Sites Act 1990 with a view to improving its effectiveness.

In respect of land hoarding and property speculation, there are already a number of tax measures in place that are designed to discourage such activities. These include: the vacant homes tax, which I have already outlined; the residential zoned land tax; the 10% stamp duty on the bulk acquisition of houses; and the residential development stamp duty refund scheme.

Any proposals for potential tax measures in the forthcoming budget must be assessed carefully and need to be targeted and clear in their policy intent. My Department continues to monitor all aspects of the property market and I will continue to work with my colleagues in government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of much-needed housing in the State.

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