Land prices and the housing crisis

Site tax and compulsory purchase orders

Sir, – Noting that most vacant site appeals heard to date have failed, it will be interesting to note if the vacant site tax actually speeds up development of these sites, or if it will merely increase the price attached to these sites as developers recoup the additional cost of the tax from the final end purchaser, resulting in more expensive buildings, the opposite of what is needed in the property market.

Bear in mind that, under the present system, the price of some recent land plots for sale would result in individual dwelling site costs of upwards of between €50,000 and €100,000 each.

Hardly a good start if trying to bring down the cost of housing.

The Government will never solve the housing crisis unless it tackles the issue of land ownership, land availability and land price along with proper planning, so the right buildings are built in the right place at the right time, as opposed to the simple granting of planning permissions.

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The threat of compulsory purchase order at agricultural prices plus a small amount of additional compensation would have a far more galvanising effect on land hoarders than this site tax.

After all, the real value justifying a selling price is in what is built on the land, not the land itself, the price of which should remain at a base level, regardless of zoning. – Yours, etc,

DAVID DORAN,

Bagenalstown,

Co Carlow.