Shay Brennan (Dublin Rathdown, Fianna Fail)
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45. To ask the Minister for Finance his assessment of the impact to date of the increase in the rate of the vacant homes tax; and if he will make a statement on the matter. [27852/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The key objective of the Vacant Homes Tax (VHT) is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use. It was introduced in Budget 2023, and as such, figures for two chargeable periods are presently available. Revenue publishes this data on their website: www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/index.aspx

VHT was charged at three times a property’s base local property tax (LPT) charge in respect of the first chargeable period (1 November 2022 – 31 October 2023), and at five times a property’s base LPT charge in respect of the second chargeable period (1 November 2023 – 31 October 2024). VHT currently applies at a rate of seven times a property’s base LPT charge with effect from 1 November 2024.

There was a decrease in the number of properties liable for VHT between the first and second chargeable periods. This is not unexpected, given the behavioural nature of the tax, the increase in the rate between the first and second chargeable periods, the tax's objective of bringing vacant residential properties into use, and the level of demand for housing in the State. Revenue further advises that the number of properties liable for VHT may continue to fluctuate as property owners continue to file returns.

The VHT is one of a suite of measures introduced to address vacancy. The Vacant Homes Action Plan – Progress Report 2025, published by the Minister for Housing, Local Government and Heritage in March, sets out the significant progress achieved across government under the objectives contained in Pathway 4 of Housing for All in 2024 and the further steps that will be taken in 2025 to bring more vacant and derelict properties into use as homes. Alongside the VHT, initiatives such as the Vacant Property Refurbishment Grant, the Urban Regeneration and Development Fund, the CPO Activation Programme, and the Local Authority Purchase and Renovation Loan, in addition to the appointment of Vacant Homes Officers in each local authority, are yielding results. Across the country, cities and towns are being revitalised and vacancy levels are declining as empty properties are brought back into use as homes.

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 assist with boosting the supply of much-needed housing in the State. As with all taxes, my Department and the Revenue Commissioners will monitor the VHT. If changes to the tax are merited in due course, I will make these changes. The key objective of the Vacant Homes Tax (VHT) is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use. It was introduced in Budget 2023, and as such, figures for two chargeable periods are presently available. Revenue publishes these data on their website: www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/index.aspx

VHT was charged at three times a property’s base local property tax (LPT) charge in respect of the first chargeable period (1 November 2022 – 31 October 2023), and at five times a property’s base LPT charge in respect of the second chargeable period (1 November 2023 – 31 October 2024). VHT currently applies at a rate of seven times a property’s base LPT charge with effect from 1 November 2024.

There was a decrease in the number of properties liable for VHT between the first and second chargeable periods. This is not unexpected, given the behavioural nature of the tax, the increase in the rate between the first and second chargeable periods, the tax's objective of bringing vacant residential properties into use, and the level of demand for housing in the State. Revenue further advise that the number of properties liable for VHT may continue to fluctuate as property owners continue to file returns.

The VHT is one of a suite of measures introduced to address vacancy. The Vacant Homes Action Plan – Progress Report 2025, published by the Minister for Housing, Local Government and Heritage in March, sets out the significant progress achieved across government under the objectives contained in Pathway 4 of Housing for All in 2024 and the further steps that will be taken in 2025 to bring more vacant and derelict properties into use as homes. Alongside the VHT, initiatives such as the Vacant Property Refurbishment Grant, the Urban Regeneration and Development Fund, the CPO Activation Programme, and the Local Authority Purchase and Renovation Loan, in addition to the appointment of Vacant Homes Officers in each local authority, are yielding results. Across the country, cities and towns are being revitalised and vacancy levels are declining as empty properties are brought back into use as homes.

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 assist with boosting the supply of much-needed housing in the State. As with all taxes, my Department and the Revenue Commissioners will monitor the VHT. If changes to the tax are merited in due course, I will make these changes.