Dáil Éireann Debate, Tuesday - 29 September 2026
139. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance to provide an update on the reason the vacant and derelict property taxes have failed to move the dial on the scourge of vacancy and dereliction in our cities, towns and villages. [68619/26]
Amharc ar fhreagra141. Deputy Joe Neville asked the Tánaiste and Minister for Finance if his Department will consider increasing the Derelict Property Tax amount to discourage property owners from leaving units vacant. [68635/26]
Amharc ar fhreagra148. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance when the new Derelict Property Tax will be introduced. [68496/26]
Amharc ar fhreagra180. Deputy Thomas Gould asked the Tánaiste and Minister for Finance for an update on the work he has undertaken to introduce the new Derelict Property Tax. [68489/26]
Amharc ar fhreagraI propose to take Questions Nos. 139, 141, 148 and 180 together.
Vacancy and dereliction negatively impact communities across Ireland. For this reason, Government has acted to promote the remediation and increased use of vacant and derelict property, as provided for in the 2023 Vacant Homes Action Plan and as documented in subsequent annual updates to that Plan. In addition to the successful grant and funding schemes, a Vacant Homes Tax was introduced in 2022. I also intend to introduce a new Derelict Property Tax in this autumn’s Finance Bill.
The Vacant Homes Tax is currently charged at seven times a property's base Local Property Tax charge. The tax operates on a self-assessment basis, where the number of properties in scope and the tax payable are dependent on the self-assessed returns submitted by property owners.
Since its introduction, there has been a decrease in the number of properties liable across each subsequent chargeable period. This is not unexpected, given the behavioural nature of the tax, its objective of bringing vacant residential properties into use, and the level of demand for housing in the State.
In respect of the new Derelict Property Tax, further details will be announced on Budget Day. The policy objective of this new tax is regeneration; it is not being designed to be revenue raising. Local authorities will continue to have a key role in relation to the identification and registration of derelict property, while Revenue will be responsible for the administration, collection and enforcement of the tax.
Work on the Derelict Property Tax is ongoing, with frequent engagement between my Department, the Department of Housing, Local Government and Heritage, and the Revenue Commissioners. It is hoped that this tax will paint a clear picture of the level of dereliction across our towns and cities. The data collected will help inform local and national decisions regarding long-term vacant and derelict properties.
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 public resources and boost the supply of much-needed housing in the State.
This new measure will build on the progress that has been made to date returning vacant and derelict properties back into use. Some key areas of progress in the past year include:
• Successful delivery of the Vacant Property Refurbishment Grant, through the Croí Cónaithe Towns Fund. To end of Q2 2026, there were 6,300 grants issued, amounting to close to €350 million paid out to support people bringing vacant and derelict properties back into use as homes.
• The €150 million Urban Regeneration and Development Fund which has been made available for local authorities to acquire vacant or derelict properties and sites for re-use or sale. More than 1,300 vacant and derelict properties have now been identified and approved under Call 3 of the Fund, with an estimated residential yield of over 5,000 homes by 2030.
These and other initiatives outlined in the Vacant Homes Action Plan Progress Report are yielding significant results. Across the country, cities and towns are being revitalised and vacancy levels are declining as more and more empty properties are being brought back into use as homes.
