More than 80,000 Homes Are Still Empty Across the Country, Despite Introduction of Vacant Property Tax
New figures reveal a concerning trend in Ireland’s housing sector. As of the final quarter of last year, nearly 81,000 residential properties stood vacant, showing little change compared to the same period in 2023.
Vacancy Rates by Region
The distribution of empty homes varies significantly across different parts of the country. Dublin, often at the epicenter of housing issues, surprisingly reported the lowest vacancy rate at just 1.2%. In contrast, the west of Ireland counties, including Leitrim, Mayo, and Roscommon, faced high vacancy rates, with Leitrim topping the list at nearly 12% of its housing stock.
Mayo recorded a 10.6% vacancy rate, while Roscommon followed closely with 10.3%. Donegal and Sligo also saw relatively high vacancy rates at 9% and 8.2%, respectively.
National Overview
Nationwide, there are 2.17 million residential properties in Ireland, meaning the 80,689 vacant homes represent a modest 3.8% of the total housing stock. According to the GeoDirectory report, compiled in conjunction with consultants EY, the average vacancy rate fell in 19 of the 26 counties, though this reduction was marginal.
The Impact of Vacant Homes Tax
In an effort to combat the issue of vacant homes, the Irish government introduced a vacant homes tax. This tax, five times the rate of the Local Property Tax, applies to homes occupied for less than 30 days over a year. Despite its implementation, the tax appears to have had limited impact, with only 2,377 homes liable for it last year.
Phenomenon Analysis
Lorcan Sirr, a housing policy analyst and academic at TU Dublin, noted that Ireland grapples with a significant challenge related to vacant properties. “There is a reluctance to employ stronger measures to tackle vacancy,” he observed. Central Statistics Office (CSO) data, though using a different methodology and excluding holiday homes, indicated even higher levels of vacancy.
Construction and Prices
In the context of these vacancy statistics, it is interesting to note that the residential property market saw some activity. Last year, the number of new residential address points added to the GeoDirectory database surged, increasing by 21% to 34,686. While the number of buildings under construction decreased slightly to 22,251, a total of 20,092 derelict residential units were identified nationwide, a 3.3% decrease from the previous year.
The average house price increased across all 26 counties, reaching €399,763 nationally. A total of 46,894 residential property transactions occurred in the 12 months up to November, with 20.6% of these for new dwellings.
Future Outlook
GeoDirectory chief executive Dara Keogh expressed optimism about the housing pipeline. He stated that, despite the decrease in buildings under construction, the substantial increase in residential address points suggests the pipeline of new homes will continue into this year.
Conclusion
The ongoing challenge of vacant properties in Ireland, despite regulatory efforts, highlights the complexity of addressing housing issues. The regional disparities in vacancy rates also underscore the need for tailored solutions.
As this issue continues to evolve, stakeholders, including policymakers, developers, and residents, must work together to find effective strategies to reduce vacancy rates and improve the overall housing landscape in Ireland.
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