Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

233. To ask the Minister for Housing, Planning, Community and Local Government if he will bring forward the date for full implementation of the vacant site levy; if he will consider reducing the number of exemptions that apply to the Act; if he will consider raising the levy applied to exceed annual land price inflation; and if he will make a statement on the matter. [2542/17]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Urban Regeneration and Housing Act 2015 introduced a new measure, the vacant site levy, with a view to incentivising the development of vacant or under-utilised sites in urban areas. Under the Act, planning authorities are required to establish a register of vacant sites in their areas, beginning on 1 January 2017, and to issue annual notices to owners of vacant sites by 1 June 2018 in respect of vacant sites on the register on 1 January 2018. The levy will be applied by planning authorities, commencing on 1 January 2019, in respect of sites which were vacant and on the vacant site register during the preceding year (i.e. 2018) and will subsequently be applied on an annual basis thereafter, as long as a site remains on the vacant site register in the preceding year.

The timeframes set out in the legislation in relation to the commencement of the application of the levy are based on legal advice in relation to the constitutional rights of property owners and are intended to allow site owners sufficient time and opportunity to initiate development on their sites, or alternatively to sell their sites, in order to avoid becoming liable for the levy.

Planning authorities are empowered to apply an annual vacant site levy of 3% of the market value of vacant sites exceeding 0.05 hectares (or 500 square metres) in area which, in the planning authority’s opinion, were vacant or idle in the preceding year, in areas identified by the planning authority in its development plan or local area plan for residential or regeneration development. The 3% rate of vacant site levy is consistent with the rate applied to derelict sites under the Derelict Sites Act 1990 and is considered reasonable, without being over-punitive, for the purposes of incentivising the activation of such sites for residential or regeneration purposes.

In addition, the legislation provides that reduced or zero rates of levy may apply in specific circumstances in order to help alleviate the financial burden faced by owners of vacant sites which are subject to a site loan and where the loan is greater than the market value of the site (i.e. a negative equity situation), and also where the site loan is greater than 50% of the market value of the site. This is to ensure that the levy provisions are fair, reasonable and proportionate taking account of the difficult circumstances faced by owners who are in this position.

In this context, I have no proposals to amend the existing legislative provisions relating to the vacant site levy in relation to the timeframes for its implementation or the rate of the levy to be applied, as proposed.

My Department issued general guidance in July 2016 on the implementation of the vacant site levy to planning authorities by way of Circular Letter PL 7/2016, entitled Implementation of the Vacant Site Levy, as provided for in the Urban Regeneration and Housing Act 2015, which is available on my Department’s website at the following link:

.

Planning authorities are presently engaging in the necessary preparatory work prior to the application of the levy with effect from January 2019, including the revision of development plans to specify the areas in which the levy is to be applied as well as the identification of specific vacant sites for entry on the register. My Department will monitor the implementation of the levy to ensure that it is being fully used in line with its intended purpose.