Damien English (Meath West, Fine Gael) | Oireachtas source

This group of amendments relates to the vacant site levy provisions in the Urban Regeneration and Housing Act 2015. As Members will be aware, the 2015 Act introduced the concept of the vacant site levy for the purpose of incentivising the development of vacant and underutilised sites and urban areas for housing and regeneration purposes. It was with the intention of bringing such sites back into beneficial use, ensuring a more efficient return on State investment in infrastructure and helping to counter urban sprawl.

Amendment No. 53 inserts a new section into the Bill to amend the 2015 Act by substituting a new section for the existing section 16 relating to the rate of the levy and provides for three key changes. An increase in the rate of levy was first signalled in budget 2018. It is proposed to increase the rate of the levy from 3% to 7% of the market valuation of the relevant sites from January 2020, reflecting sites included in the vacant register in 2019. The proposed increase aims to ensure the levy will be more aligned with the increase in house price inflation in recent years, thus having a more meaningful impact, while also helping to counter land hoarding. As the increase will not take effect until 2020 for sites on the register in 2019, the amendment also provides advance notice for site owners of the increased levy rate that will be applicable in 2020.

As mentioned, the 2015 Act provides for a reduced rate of the levy that can be applied in specific circumstances. These arrangements were introduced in different economic circumstances. In the light of the improved economic circumstances since the passage of the 2015 Act and for the purposes of further strengthening and tightening the vacant site levy provisions, the second key change is that it is proposed to remove the relevant reduced levy rate provisions in section 16 of the 2015 Act.

It is also proposed to provide that the Minister may, by regulations, vary the levy rate by a reduction or an increase, with the levy rate not to exceed the 7% set out in this legislation. In making such regulations it is proposed that the Minister be required to have regard to increases or decreases in property prices and relevant property related information as published by the Central Statistics Office.

Amendment No. 52 inserts a new provision into the Bill amending section 5 of the 2015 Act. Section 5 contains a definition of a vacant site – for residential and regeneration land, respectively - for the purposes of the application of the levy. The amendment proposed relates to the clarification of what constitutes "vacant and idle" lands for the purposes of the vacant site levy on residential land. This is to address the situation where developers or land speculators could hoard residentially zoned land and avoid the levy liability by leasing it or putting it to use for a non–residential purpose, for example, farming, by claiming that the land is not vacant or idle for the purposes of the levy. It is proposed that a site on residentially zoned land shall be regarded as vacant if it is "vacant or idle" or if it is not being used primarily for the purpose for which it has been zoned, that is, the provision of housing, where the most recent purchase of the land occurred after it was zoned residential, irrespective of when it was purchased. By differentiating between lands purchased following a zoning change to residential and lands long held and operated as farms, the amendment targets developers or speculators who are hoarding zoned, serviced lands purchased for residential use, while also allowing farmers who have operated their farm for a number of years prior to the rezoning from agricultural to residential to continue to operate the farm without liability to the levy on the basis that no purchase of residentially zoned land was involved. I consider that the amendment is balanced and proportionate and in line with the intention of the levy measure.

The other amendments related to the vacant site levy are of a general or minor nature. Amendment No. 49 inserts a new section into the Bill which is a standard definition provision. Amendment No. 54 inserts a section into the Bill which contains five minor, consequential or miscellaneous amendments to the vacant site levy provisions included in the 2015 Act.