Vacant homes tax on way for the next budget, warns Varadkar

TAOISEACH Leo Varadkar has said his Government will introduce a vacant homes tax in the next budget and accelerate powers to compulsorily purchase empty houses.

‘We have done some work already on a vacant homes tax,’ he said. ‘That work I would expect to be completed next year, in advance of the next budget.’

However, the introduction of a vacant homes tax – which would see additional taxes on landlords who leave a home uninhabited – is legally fraught.

Mr Varadkar again raised doubts about what constitutes a vacant home. He said the Government was looking at aping a proactive measure that has been initiated by Louth County Council.

‘One thing Louth does, which I think is very effective, is that they actually use CPO powers to purchase vacant homes and abandoned houses,’ he said.

‘That’s a good model, which can be followed into the future.’

Housing Minister Eoghan Murphy has been in consultation with the Attorney General about a vacant home tax, which would see additional tax penalties on landlords who are owners of uninhabited properties.

The Government believes it would have a ‘double benefit’ of being a revenue-raising measure for the budget and of motivating people to either sell unused houses or make them fit for renting.

Mr Varadkar also spoke about a more widespread rural resettlement scheme, but added: ‘It would only be a small part of the solution. Obviously, it would have to be voluntary.’

Fianna Fáil’s Barry Cowen also expects to bring forward radical schemes to deal with housing next year. He believes that the promotion of housing co-operatives would be a welcome solution.