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DUBLIN’S LORD MAYOR is welcoming a move by the Government aimed at increasing the supply of homes in the capital by imposing a harsh levy on developers who don’t build on prime sites.
A special Cabinet meeting will be held later this week to discuss the plans. It’s hoped the scheme will boost the supply of housing in Dublin city in particular, creating tens of thousands of construction jobs in the process.
The levy plan has been championed by Oisín Quinn, who set up a task force on the issue last summer. The team of councillors, city officials and property experts handed a submission on their proposed scheme to Government last July.
The task force has met with senior Government advisors over the last few months as work on the plans continued, and also held meetings with NAMA Chairman Frank Daly and Environment Minister Phil Hogan.
It’s hoped the threat of punitive new levies will encourage developers holding on to zoned land to build on it — thus increasing the supply of housing, hotel and office space in the city centre.
This week’s Cabinet meeting comes in the context of a shrinking supply of family homes in the Dublin area. It emerged last week that there were only 3,000 residential properties for sale in the capital — down from 6,000 two years ago.
Levies
Quinn said that having too many vacant sites could damage the city’s attractiveness, economic potential and lead to increased urban sprawl.
“We need to develop that space — to grow without sprawling, in order to create a thriving residential and retail community in the city,” Quinn said.
As part of the plans, developers would be given the chance to get a break from any new levies if they allow vacant spaces to be used for a pop-up park or other civic-minded project. Quinn said this part of the plan had been received very positively in meetings so far.
“We’re very keen to ensure that we don’t punish people who are trying to develop — so by doing this, developers can effectively hand over the keys to the council for a set amount of time and the land can be put to public use.”
Positive effects
The Lord Mayor said the proposed scheme was already having some positive effects, as there were indications that site speculators were changing their behaviour as the plan gained positive traction.
It’s understood the ‘levy’ proposal is being considered as part of a range of measures aimed at increasing housing supply in the country.
A spokesperson for building industry body the CIF said that while the overall plan aimed at boosting supply of homes was to be welcomed, the imposition of a levy on developers would only serve to provide another “barrier to building” and would ultimately push up prices for house purchasers.
Brilliant! Badly needed. There’s developers out there holding on to land to create scarcity and drive up prices again. The land should developed now. We’ve had enough of soaring prices, boom and bust. We need slower but steady growth and for that land is needed. Our towns and cities are full of derelict sites. They’re an eyesore.
I would say the cheaper locations will be developed first and the prices. In order to cover levies on the more expensive locations they will be quite expensive and then when demand is sufficient enough the prime locations will go on sale
Why not implement the Kenny report (1974) if they’re really serious. Oh wait, it’s cos the States solvency is tied to house/land price rises.
If you bought a site for 500 k now it’s wort 300 k. Would you not wait till it’s value is back at 500k or more
That’s the whole point Pete – the country can’t afford to wait until land speculators are ready. We have people on the dole queues that need job opportunities now.
If that means land hoarders take a hit, so be it.
But then the banks will take a big hit then the taxpayer will. Would it not be a better idea to give tax relief to anyone who builds houses on that land and sells them for a set price
Tax relief means the taxpayer takes the hit also? And the banks won’t loan to unprofitable developments, so it has to make money at the end of the day.
It’s about discouraging land hoarders from waiting until the boom is back before selling. We need action now, not in 10 years.
The people who buy the houses will pay tax plus they will pay property tax. Land owner makes a few quid banks will make money people get jobs. People will get affordable houses. Nobody losses.
Nobody loses. Except the people buying the more expensive house.
Pete I’ll have some of what your smoking! Your business sense is up your a#s! A world where nobody losses. The land owners will loss if they are forced to build or sell land they bought for more than it’s worth now. Banks will lose when said landowner defaults on his loan after building or selling land at loss. Government will lose as it will have to prop up banks after loses from defaults! Sound familiar????.
The amount of derelict undeveloped sites around Cork St, Blackpitts & Dublin 08 in general is unbelievable, I’d imagine this is replicated in other areas, also plenty of vacant run down apartments above shops in the city center. They can bring in laws to purchase land for motorways, surely they could do something similar & create homes for people in the city, thus avoiding the urban sprawl & commutes this entails.
Oh my gosh, a lengthy process! Let’s leave it all as it is then!
No need for purchase orders, just a regulation stating that a landlord cannot rent out a shop or office if the rest of the building is derelict. Which should be common sense anyway, as it prevents damage, rodent infestation etc. to the the rented premises or their neighbours.
Could bring back a type of schedule A tax which would assume an income from all properties (except PPR) That would make landlords and developers either sell or develop the properties.
If NAMA released some of their vacant Dublin properties, that would take a lot of the pressure off the current price bubble. They have more apartments than houses but it would still cool the market somewhat.
Also mortgage defaulters should have their properties repossessed and sold. If you don’t pay your rent you are kicked out, it should be the same for defaulting buyers.
It wouldn’t cool the market because there are very few 3-4 bedroom apartments.
The breakfast roll is coming back! Fresh ones anyway.
Increased turnover means no more leathery rashers sitting there all day waiting for a hi-vis jacket!
Woo hoo!
When I saw land hoarders I imagined them rolling up a field and keeping it under the stairs.
A man walked into a pub with a roll of tarmac under his arm ,and says can I have a pint of guinness and one for the road….
so I assume the Govt is providing the money to fund all this wonderful building ? – ‘cos the banks certainly won’t. Talk, without any money to back it up.
Exactly !
John your totally correct!
Dublin has to start building up. 20 floors plus. Don’t know why the capital fears high rise buildings.
Dublin doesn’t.
However Ireland’s most powerful single entity (An Board Pleanalla) are against anything that doesn’t look like a Georgian relic.
Well said Marc…. but unfortunately agencies like bord plonker or whatever is called are stacked to the rafters with fools who think they live in a museum or a set from a from a movie scene
Move the docklands out of Dublin Bay and create a new high rise;, 21st century version of Dublin…. Give the city a dynamic and modern new section like other cities while retaining the older parts of the city s character
There are 8 boarded up houses on my road at the moment. The one next door to me has been empty for 3 years. Why isn’t anything being done about these house that do belong to council but are lying there vacant?
So in other word ” Hey lads lets make another building bubble”.
Rubbish.
There is a very severe shortage of family homes in Dublin and it is driving prices out of control.
Greater Dublin needs to have at least 15-20k homes built and that does not tdeal with pent up demand.
Increasing supply would have the opposite effect, would it not? Increasing supply to meet demand should help to ease upward pressure.
Rubbish? your the one talking rubbish,who is going to buy these FAMILY HOMES I know, young couples with borrowed money ie mortgage,30 year mortgage seanie secure job and secure salary yeah?I feel so sorry for the people who don’t want to buy a property but who rent with no security of tenure disgusting rents and vindictive landlords perhaps the geniuses need to look at that first,the Irish are a stupid race of people no wonder other countries take the p1ss out of it
Declan.
You are presuming that everyone else is in the same boat as you are or the people you know are.
Not the case.
There are enough people in the greater Dublin area to take 15k houses a year who have great deposits and secure jobs even considering how bad the economy is. That would still mean the banks being selective in granting mortgages.
Oh yes there is ! Oh no there isn’t !
Declan , you’re living in the real world !
A harsh levy on persons, organisations or pension funds that own more then 3 properties would also be good.
Yes because successful people who own more than one property should be punished. Lets put a tax on successful people, how dare they be successful.
U can’t just blanket charge everyone who owns multiple properties. That’s not very fair
Those guys in the picture have been building that wall for two years.
Union block layers
What about developers that bought land at the height and the land is only worth a 5th of what they paid for it. Will never be worth building on and the tax could cripple them even more. This tax will not work everywhere. The government and banks inflated the prices and now when the prices are down and they are not getting stamp duty on any transactions they want to kick people while they are down with an extra tax.
Plenty of other things “successful people” can put their money in. Having a place to call home affects everyone in this state. Having affordable housing should be available to all. Something as important as a home should not come down to making profits. But unfortunately this and many governments sees it as that.
During the boom the only trade that decreased throughout the length of the boom were block layers. Developers got so sick of being held to ransom by them they designed most of the blocks out of the builds. Just goes to show ultimately where unions will get you. Unemployed!
Thats a losers comment!!..the type of thing people with no ambition or drive come out with!
I don’t know about up the country but in Munster there is just no money to be made at houses even as low as land prices are at the moment. Labour is down but materials are even higher than in the boom. Charging VAT on houses adds 13.5% onto the sale price. If they cut this maybe it might be worth considering. In the UK there is 0% on all construction even for private home owners. Also they have just brought in new regulations starting next month which will require more inspections. Am told this will put costs up around 10 to 15 thousand per house. Planning development charges, complying with Part V social and affordable housing requirements, getting finance without having to give personal guarantees, the list goes on. There is not enough reward for the risk. The government are deluding themselves if they think builders will start building again any time soon. It only another stealth tax. House prices need to rise so developers can make money. It’s as simple as that.
The only thing simple is you!
Great argument Mike, you’re one sharp lad! The country is safe with the likes of you around.
Thank you.
No problem Mike. You just proved my point. Sarcasm lost on you.
Spot on about blocklayers Family Guy , they were pretty much designed out of most buildings during the latter half of the boom
A better solution to derelict city centre sites would be a law passed as is the case in some other countries where the owner has got to hand it over to the local authority if they fail to develope a vacant site within a set time scale, a case of use it or lose it helps prevents hoarding and focuses the mind.
I’m crying now.
The whole idea of this tax is that it only applies to people who do nothing with the land. It’s like a big threatening stick. If you do something productive with the land, you won’t pay any tax.
Land Hoarders are not in any way successful or hard working. They’re just taking advantage of the system as it is there. You buy land (simple). Sit on it for 5 -10 years then sell it off for a big profit.
It’s basically making money for doing nothing, in the meantime people with business ideas can’t get them off the ground because of a lack of land. You might have a great idea for a new product, but that product needs to be made in a factory. And if you can’t get land to build a factory because some idler is sitting on his derelict land, your idea never sees the light of day.
This is a long overdue idea and badly needed. I hope no money is collected from this tax, I hope it just encourages owners to do something productive with scarce and valuable land.
Noel how do you come to the conclusion that land hoarders are not hard working or successful? They had to make money to buy the land or at least have some money to get the loan. Then they have to work hard to maintain the repayments of the loan!. You need to rethink that statement. Very silly comment.
Cdnt agree more. BATU the brickies union were the scourge of every site in greater Dublin area.
Any unionised job lost is something to be celebrated
How is hoarding land in any way a productive use of it?
Noel I never said it was a productive use of it but a lot of people have got burnt buying development land. The governments and banks inflated the price of it and now they want more money. Think the government should stay out of it unless they are going to provide some productive kick start to the construction industry not kick owners of land while they’re down with extra taxes. It’s a ridiculous proposal which will not work. Where are the builders going to get the finance to develop the land? The banks. You must be joking. Most houses are loss making at present and no bank will lend for that.
Screw the land owners. They gambled and lost. That’s Capitalism.
Anyhow if they want to avoid this tax, it’s pretty simple – either develop the land for productive use, sell it or else (for a few years) clean it up and turn it into a “pop up park” which will at least make our towns and cities more attractive places to live and visit. It’s really very fair.
Anyhow, if a company is so broke that it can’t do any of these things than its better it’s liquidated. Zombie banks are a bad idea and so are zombie development companies.
A recent poll found a huge majority in favour of this proposal:
http://www.irishtimes.com/news/politics/dubliners-support-idea-of-levy-on-disused-sites-1.1672526
Yeah they asked the general public. Of course most are going to say yes. I’d love to see more Parks etc. But my business head says it’s unworkable. Where are most of these land owners going to get 3 percent of the market value if they are paying loans etc. Borrow it??. Who will lend them it. Banks? I love your screw the land owners comment. Well thought through. If people weren’t successful in business you wouldn’t have a job! That’s capitalism also. You have to lay the foundations to allow business succeed not tax the life out of them.
Are you actually reading the article?
If they can’t afford either the tax or to develop the land, then they can make it available for a few years for a pop up park. For almost nothing.
Result? Idle land put to good, attractive use for a few years. City looks nicer, tourists and residents benefit. In a few years revisit the idea and redevelop the site.
And yes, screw those land owners who gambled and lost. Crystallise the losses and let some OTHER developer with ideas do something useful with the land. The whole point is that the current land owners/hoarders obviously haven’t been successful in business (if they were the land would be in productive use) and should be liquidated so a new company with bright, fresh ideas can create jobs and do something productive.
Tired, worn out businesses shouldn’t be let stand in the way of new, energetic companies with ideas.
Define almost nothing, put a figure on it? A park costs a lot of money, pop up or not. Probably more than the 3 percent tax. You can’t just lay a bit of grass and put in a swing and call in a park. Regulations have to be followed. You then have public liabilty insurance in case someone falls and injures themselves, maintenace etc. Big money. They really haven’t thought this through. It all very airy fairy!
Is that a Labour politician coming up with a sensible and workable plan to address a genuine problem? Wonders never cease.
Good idea, which is why it will never happen
Its only a good idea if it results in the building of properties that people want to live in. The building of a load more apartments and duplexes etc etc would be a disaster. Proper homes with gardens and communal areas in estates so people can raise young families is what is needed. Not more tiny apartments. There is a shortage proper family homes on the market in Dublin. That is what needs to be addressed and planning laws should really be introduced to prevent the building of more and more apartment blocks and crammed housing estates outside the immediate city centre. But as Ben says, if it a good idea in this country, it will never happen.
So what you want is spacious housing estates? Not sure if you realise but spacious housing estates sprawling ever outward from the city centre is partly to blame for Dublin’s housing crisis. Urban sprawl degrades public transport, encourages car ownership and spreads service provision thinner and thinner. The Irish aversion to apartment living needs to change, helped along by building regs that demand a higher quality overall. We’ve gotten rid of bedsits (new ones at least) and single aspect is universally regarded as bad design, so hopefully we can produce some more decent apartment developments in the city suitable for families.
Dublin lacks the acres for endless semi-D’s.
Build up….minimum square footage. More 3+ bed apartments with gardens, basements & storage.
All do-able.
Its not what I want. Its what the market wants. Just look are what “type” of housing that is in demand and rare in Dublin. Thats what people want. If we simply build more apartments on the outskirts of the city we will have learned nothing. Apartments really only make sense near the centres of citys. There has been too many “M50″ high density development failures
Ireland seems to be growing a lot of Kommitees and Kommisars recently, Stalin would be so pleased
To be fair to developers
It’s not like they are able to get the loans from the banks to build on these sites
“Hello mr bank manager, I need 5 million to build 50 apartments on a good site that I have, I’ll pay you back when they are all built and sold in 18 months time”
Not really thought this thru Enda
They were able to get the money from somewhere to buy all that land at insane Celtic Tiger prices….
Yes the banks
They can’t get it from the banks anymore
Hence they can’t build
Hence the shortage of accommodation
Another brilliant idea to help out the bankers and builders,It would interesting to find out who is really behind this well orchestrated greedy plan.
About time it’s a joke how much vacant land is in the city. I said it years ago there should have been an outright ban on apartments outside the city centre as there’s ample space for them there. The ifsc should be turned into a high rise development like most modern progressive countries. Plenty of lads I know with multiple properties that are in a disgraceful state they bought them in the 80′s and are making a fortune renting them to people who have no choice because of the lack of development and these fellas are cleaning up. Also I’d demolish the likes of sherif street and the flats in the city and move those scroungers out while developing that prime land for hard working people. If you stay on handouts for your life you should not have the right to chose where to live. I had to buy a dump an hour from my home town because I couldn’t afford to buy there.
150,000 mortgage arrears,pay cuts tax increases another austerity budget in October,nama have 300,000 empty units being hoarded response of the government lack of supply of family homes in Dublin let’s create a few building jobs by building houses because 90,000 people on the dole will never work in construction again if we don’t,there is no shortage of supply,build classroom extensions schools road bypasses etc
There is a shortage of supply.
A massive shortage of supply where they are needed.
There is even a shortage of rental homes in Dublin.
Deccy.
Put up some proof please that NAMA have 300k empty residences on their books.
There is so much horse poop in your post, its hard to see!
Yes there is a shortage of rental properties in Dublin and around the country and this is where the issue needs to be solved
“300,000 vacant properties belonging to NAMA”??
still waiting for the proof Dec
Declan is using figures from 2007 and presuming that nothing has changed.
Even give the economic disaster the population of Ireland has grown by a 150k people.
Old houses that have become disused, families that want to move from 2 bed apartments to houses etc.
We have had 6 years without any meaningful house building.
Not really sure if it is democratic, not saying I disagree but I do wonder!
Land hoarders = the people from Ballyfermot. How about we move the criminal degenerated people from Ballyfermot far away from Dublin and re-develop the area for law abiding citizens. That would solve the housing problem for Dublin, reduce crime, save garda resources and ensure defenseless animals in the area are safe.
Aren’t you just spreading the problem and crime out across the country then?
And where we will we house all the trolls?
Universal land value tax solves all of societies ills but it’s never gonna happen.
We could even get rid of the property tax with a site value tax. Doing up your house would no longer increase in your tax bill. Plus if rich people manage to lobby to get the new Luas build near their house and their land gets more valuable they have to give a little of that benefit back to everyone else.
Dodgey block work there ,should be half bond .Big gap to fill.Sloppy.
Thanks Enda, keep up the fantastic work :)
The whingers won’t like this
I hope theres work for painters over 57 being out of work is driving me mad !
It is time we started confiscating all wealth above 100k from the greedy fat cats in society.
Nobody needs more than that to live on.
Vote SF for a fairer Ireland.
Lol
Classic
This would be the SF where Gerry Adams claimed over one million euro in expenses for being a MP in Westminster despite never taking his seat
McGuinness who took a similar amount. In total €5 million claimed by the various SF MPs. Bear in mind part of this was the staying away from home allowance (for seats they never accepted).
Yes real integrity there.
“Vote SF.
Communism with an Irish twist”
Feck off!
would these be the same developers on NAMA payroll….so effectively the tax payer will pay these levies
Isn’t a lot of the hoarded land now owned by NAMA? If they haven’t managed to offload it, clearly it’s not viable. Cue another generation of ghost developments when this plan flops in a few years.
This is genuinely the only good idea our government has ever had.
Ever?
Ever ever??
if you think its a good idea then there must be some thjng there not telling us
Ever.
I would hazard a guess that not everybody who is hanging onto a landbank in the hope of future profit can be described as a “developer”. It should be simple enough now for the Revenue with their much vaunted “we’ll track down everybody” attitude to find the owners, contact the owners, and publicly list the owners – for the information of the general public. I hope NAMA are not sitting on any landbank.
More bs again, is there some form of election coming?? If you graphed the number of ambitious plans like these announced over time there would be a large peak before elections and a sharp decline soon after….still,it’s not like anyone else would be any different!
What a great time to be selling, those houses snapped up at the repossession auctions are selling for more than 100% profit, god I love capitalism it’s fantastic :)
What I never did understand is why we need a separate site tax when the Commission on Taxation, the Programme for Government and several other docs all indicated and in some cases promised a site value tax anyway? What happened is we had short term thinking which resulted in a tax based on market values (tax cities irrespective of costs) and then a gap where the land tax was meant to come in!
Bad policy yielding bad decisions that later require cleaning up, not too peculiar these days is it?
Genuine question because I think I’m missing something here – could someone please explain the logic behind building more houses with all the ghost estates around the country? Can the existing housing not be renovated and used? I really don’t understand why we need to build more.
Apologies if I’m being a bit stupid but I genuinely don’t get it.
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