Kildare councillor: Urgent action needed for unpaid vacant site levies

Urgent action is needed for unpaid vacant site levies: that's according to one Social Democrats councillor based in Newbridge.

Cllr Chris Pender pointed to data obtained in response to questions asked by his party's Housing Spokesperson, Cian O'Callaghan TD.

Elaborating on his point, Cllr Pender said: "This indicates that less than 2 per cent of the money owed to local authorities was paid last year, leaving councils owed a total of €47.5 million in unpaid vacant site levies since 2019.

"In County Kildare alone, developers and property owners owe a total of €131,600 in outstanding levies since January 2023.

"The situation is part of a nationwide trend, with local authorities collectively owed €8.9 million in unpaid levies.

"These figures demonstrate the prevalence of land hoarding and the challenges local councils face in enforcing the vacant site levy, designed to discourage land hoarding and promote property development."

He added that he has 'deep concern' regarding the situation, saying "The unpaid levies have allowed developers and landowners to hoard land, driving up land and house prices and exacerbating the housing crisis in Kildare and beyond.

"We need urgent action to address this issue and ensure that vacant sites are put to productive use to meet the housing demands of our community."

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Cllr Pender continued: The vacant site levy was introduced to tackle the housing crisis and encourage the development of suitable housing on idle land.

However, its lack of enforcement has resulted in speculators treating it as optional, leading to a detrimental effect on land and house prices.

"Many local councils, including Kildare, are struggling to collect the levies owed, with some failing to identify vacant sites in 2022."

"The forthcoming Residential Zoned Land Tax (RZLT) is set to replace the vacant site levy, with the first valuation date scheduled for February 1, 2024. Under the RZLT, landowners will self-assess the market value of their land on the valuation date and pay a 3 per cent tax based on this value.

"While this new tax is a step in the right direction, concerns have been raised about whether the rate of 3 per cent will be sufficient to deter land hoarding and incentivize the development of homes on idle sites."

Cllr Pender called on the government to consider 'more robust measures to address land hoarding effectively,' and further called for the RZLT to be set at a rate that 'genuinely encourages property development and affordable housing.'

He added: "The government must collaborate closely with local authorities to develop comprehensive solutions to tackle the housing crisis and effectively enforce the new tax."

Cllr Pender concluded his point by saying urging the public and local stakeholders 'to support efforts to hold developers accountable for unpaid vacant site levies and to work towards a solution that ensures affordable and accessible housing for all citizens in Kildare and across the country.'