Jimmy Harte (Labour) | Oireachtas source

On valuation of the property, in my experience open market value would be defined as sale within a reasonable time, perhaps three or four months. Like other Senators, I had queries from constituents who asked how would one value a property that was valued at ¤500,000 five years ago.

There are two ways of valuing a property. One is comparable valuation where the house next door was sold, but that is not very accurate at present. The other is the cost of rebuilding, that is, the cost of bricks and mortar plus the site value, where the site value creates the difficulty with valuation.

Would the Minister clarify whether self-assessment will be the method used by everyone or will there be guidelines from the Revenue or the Department stating that in a town, such as Letterkenny, most properties will be within a certain band? At present, there is a difficulty in valuing a property because finance is not available. However, every property has a value. As I said to someone, if he was left a property and wanted to dispose of it reasonably quickly, there is a market value on it.

What that value is now is difficult to pinpoint. There needs to be clarity in areas where sales, particularly in country areas, can be non-existent for several years. Will self-assessment be allowed? What discretion has the occupier?