Written answers

Wednesday, 20 February 2019

Department of Housing, Planning, and Local Government

Vacant Sites Levy

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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34. To ask the Minister for Housing, Planning, and Local Government if he is satisfied that the changes introduced in the Planning and Development (Amendment) Act 2018, specifically the removal of provisions in the Urban Regeneration and Housing Act 2018 relating to reduced rates of vacant site levy being applied in situations in which a site loan exceeds specific percentages of the market value of a vacant site, are working as intended; if there has been an increase in the number of sites being placed on the register following the removal of the exemptions; if he is satisfied that local authorities applying the most up to date version of the vacant site levy; and if he will make a statement on the matter. [8469/19]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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The vacant site levy measure was introduced by the Urban Regeneration and Housing Act 2015.  As part of an on-going oversight and review of the levy, the Planning and Development (Amendment) Act 2018 introduced amendments to the 2015 Act, which collectively aimed to further strengthen the vacant site levy provisions.  The amendments included provisions to increase the rate of the levy from 3% to 7% for sites on local authority vacant site registers from 2019 onwards and the removal of the possibility of applying reduced or zero rates of levy for sites on registers that are subject to a site loan, reflecting the improved economic circumstances and higher property prices since the levy measure was originally introduced.

The removal of the possibility of applying reduced or zero rates of levy on specified vacant sites does not impact on the number of sites placed on vacant site registers. The inclusion of sites on registers continues to be determined by the criteria provided for in section 5 of the 2015 Act, that is -

(1) in the case of residential land, that the site is situated in an area in which there is a need for housing, the site is suitable for the provision of housing, and the site or the majority of the site is vacant or idle, and

(2) in the case of regeneration land, that the site or the majority of the site is vacant or idle, and being vacant or idle has adverse effects on existing amenities or reduces the amenity provided by existing public infrastructure and facilities in the area in which the site is situated or has adverse effects on the character of the area, subject to the site exceeding 0.05 hectares in area.

While application of the levy provisions is a matter for individual local authorities, my Department continues to monitor implementation of the levy to ensure that it is being effectively applied, in line with its intended purpose of incentivising the development of vacant or under-utilised sites in urban areas.  To support this work, progress reports were requested from local authorities and the responses received are currently being examined by my Department to see what further implementation supports may be required.

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