Compulsory purchase orders ‘are most urgent’

A MAJOR programme of compulsory purchase orders should be ‘urgently activated’ to deal with the housing crisis, a major report to Government has recommended.

However, consultant group Indecon does not recommend a vacant property tax as it does not believe it would be an effective response to housing shortages.

Indecon also recommended that homes vacated by owners due to illness should have their home exempt from the current Local Property Tax.

The report called for move evidence to be collected to monitor movements in the level of vacancies of residential properties. The consultants said consideration should be given to introducing lower capital gains tax for long-term vacant residential properties.

The report arose from an amendment tabled to last year’s Finance Bill by Finance Minister Paschal Donohoe after he announced in his Budget 2018 speech that he would investigate a vacant homes tax.

He said last night: ‘Before proceeding to introduce a tax of this nature, it was vital that we have a sound understanding of the extent, locations and characteristics of long-term vacant dwellings, and the reasons why they are currently vacant.

‘Indecon is not recommending the introduction of a residential vacant property tax at this time as they do not believe it would be an effective response to deal with the housing shortage. They do, however, recommend that this is kept under review,’ he said.

‘It is also Indecon’s view that the very low vacancy rates in the areas of greatest demand for housing, indicate that the potential for a vacant property tax to increase housing supply is very limited and could represent a distraction from the need to significantly accelerate the building of new social housing, affordable housing and the facilitation of other housing supply which the Government has under way.

‘I will now examine the report and its recommendations, in conjunction with relevant departments and will make my views known,’ he said.