Budget 2023: Vacant homes tax 'a capitulation to landlords and developers', claims Cork TD

A Cork TD has described the new vacant homes tax, introduced in Budget 2023, as “an absolute capitulation to landlords, speculators and private developers”.

The new tax will be self-assessed and will be charged at a rate that is three times the property’s local property tax rate.

Sinn Fein TD for Cork North Central, Thomas Gould, said the tax amounted to the equivalent of 0.03% of properties’ values, which he described as “as good as nothing”.

Finance Minister Paschal Donohoe said he is introducing the tax, which is expected to raise as little as €3 million a year, to increase the supply of homes for rent or purchase to meet demand.

According to budget documents, the “primary objective” of the tax is to “change behaviour rather than raise revenue”.

Mr Gould said the new tax represented a complete failure on the part of the Government to tackle vacant properties.

“I believe it’s an absolute capitulation to landlords, speculators and private developers,” he said.

“A 0.03% levy or tax is as good as nothing.

“We were looking at a minimum of at least 7% if not higher to really incentivise landlords who are sitting on vacant homes,” the Cork North-Central TD said.

“We have an estimate of 100,000 vacant properties in the State, 7,000 of those in Cork city and Cork county.

“The minister’s announcement today is just going to be heart-breaking for people who are looking at vacant homes and empty houses around their communities, especially where people are looking to rent or buy properties.” Mr Gould, who is a member of the Oireachtas Housing Committee, said he had raised the issue of vacancy numerous times in the Dáil, and he said the lack of housing in Cork had reached crisis levels.

“It’s a real failure of the Government to tackle vacancy, they had given a commitment that they would tackle it in this budget, and it is shameful that they have not,” Mr Gould said.