O’Dowd reiterates call for Empty Home Tax in RPZ’s

Fergus O’Dowd, Fine Gael TD for Louth and East Meath, is again calling on the Government to consider the urgent implementation of a Vacant Home Tax in Rent Pressure Zones (RPZ).

“New figures published by the Central Statistics Office from the 2016 census have shown that the vacancy rate in houses and apartments last year was 12.3 per cent. This dropped to 9.4 per cent when holiday homes were excluded.

“This has led me to renew my calls for the Government to consider a Vacant Home Tax, to be applied on homes in the Rent Pressure Zones that aren’t a family’s principle private residence, after they have been vacant for 12 months.

“I think this is a common-sense proposal aimed incentivising people to bring these homes back into the housing market where they are needed.

“The principle aim of this would be to return an empty or underutilised property back in to use as a long-term rental home for those in need of stable housing. This will help alleviate pressure on the rental market in the designated RPZ’s, established by Minister Simon Coveney earlier this year.

“I acknowledge the excellent work that Minister Coveney has done on the housing issue since he took control of the Department in the middle of last year. I recognise that it will take time before many of the measures he has already implemented come on stream.

“The creation of the RPZ’s was a very positive step, albeit a temporary one. Now we need to utilise all available resources, such as a vacant property tax, to increase housing supply where it is badly needed.

“A poll conducted by the Peter McVerry Trust found 62% are in favour of such a tax. This was without respondents being made aware that there would be exemptions from the tax in some specified instances or what rate the tax would be applied at.

“I believe that the vast majority of people would favour a Vacant Homes Tax in the newly created RPZ’s.

“Revenue raised from such a tax could be allocated directly to fund Repair and Leasing Schemes on a local level.

“An Empty Homes Tax could be an equivalent of a multiple of property tax or a percentage of approximately 1% of the value of the home as is the case in many countries worldwide.

“If we apply this model to the Rent Pressure Zones, we could fund the renovation of thousands of homes annually.”