Vacant site levy
What is the Purpose of the Vacant Site Levy?
A vacant site levy was established under the Urban Regeneration & Housing Act 2015. This levy is a site activation measure, to ensure that vacant land in urban areas is brought into beneficial use. At the passing of this Act, the Minister stated the levy is a "visible demonstration of the Government's commitment to tackle reasons why so many key sites that are suitable for development are not coming forward at a time of such a major need for housing".
What is a Vacant Site?
A vacant site is set out in Section 5 of the Act, and is defined as any land (exceeding 0.05 hectares) where:
- in the case of residential land: there is a need for housing in the area, the site is suitable for housing and the site, or majority of the site, is vacant or idle; and
- in the case of regeneration land: the majority of the site is vacant or idle and is having a negative impact on the character of the area.
On January 1st 2017, Kilkenny County Council established a Vacant Sites Register. A vacant site can be entered on the register when the Council is of the opinion that it has been vacant for a minimum of 12 months preceding its entry on the register.
Note that according to Section 6(5)b of the Act, residential sites depending on investment in public infrastructure and facilities (e.g. road infrastructure and/or water services) to facilitate development do not qualify as Vacant sites.
What has been the process to date in County Kilkenny?
In line with the approach outlined in the Department's Circular Letter PL7/2016 "Re: Implementation of the Vacant Site Levy", in the first instance the Council provided for the development of vacant sites in designated areas as an objective in the Development Plans. The designated areas correspond to the County Core Strategy (and settlement hierarchy) with Kilkenny City and Ferrybank as the largest urban centres, and the next tier in the hierarchy being the District Towns of Callan, Castlecomer, Graiguenamanagh and Thomastown.
Variation 2 to the County Development Plan, and Variation 4 to the City and Environs Development Plan, which established the policy context for the implementation of the levy, were adopted by the Council on Monday the 23rd October 2017. Provision for the application of the levy was also included in the Local Area Plan review processes.
Process for including sites for 2018
A targeted approach was taken in Co. Kilkenny and in 2017, sites in Kilkenny City, Castlecomer and Ferrybank were selected, as the relevant Development/Local Area plan policy context would be in place in these urban locations by the end of 2018, when the levy is payable.
Kilkenny County Council notified 35 property owners (relating to 32 vacant sites) in these 3 targeted locations by way of letter in November, 2017, outlining the reasons their sites were considered vacant under the legislation. The identification of these sites did not require entry onto the lands.
Property owners had the right to make a submission and 24 submissions were received. All submissions were considered. Following this consideration, a total of 30 sites were then entered on the vacant site register in December 2017. The Council served a second notice to the owners of these 30 sites in December, stating that their sites were now entered on the Register, and giving them information on how to appeal.
The Vacant Site Register went live on the Council's website on 21st December, 2017.
Process for including sites for 2019
During 2018, sites were reviewed across the three urban areas of Kilkenny City, Castlecomer and Ferrybank, and sites were also assessed in Callan and Thomastown. In December 2018, the Council added a total of 21 Vacant sites to the Register.
Process for including sites for 2020
During 2019, sites were reviewed across the five urban areas of Kilkenny City, Callan, Castlecomer, Ferrybank and Thomastown. In December 2019, the Council added a total of 17 Vacant sites to the Register.
It is important to note that this is an ongoing programme of identifying and registering vacant sites, and this is by no means an exhaustive list. The next phase of additions to the Register will be for Graiguenamanagh. Kilkenny County Council welcomes suggestions for sites in any of the designated areas to be included at any stage.
Process for including sites for 2021
During 2020, sites were reviewed in the urban areas of Kilkenny City, Ferrybank and Thomastown. Owners were notified of the Council's intent to enter their site on the Register.
What information will be found on the Vacant Sites Register?
Each vacant site placed on the register will include the following information:
- Where the site comprises registered land, the folio details
- The name and address of the owner
- Particulars of the market value of the site; and
- Such other information referred to in the Act that the Minister may prescribe.
Additional information in relation to dates and location may also be provided for ease of reference.
What will the amount of the levy be?
A site entered on the register is subject to the vacant site levy, payable in arrears each year beginning in 2019. For 2018, the levy is 3% of the site's market value. For 2019, and every subsequent year, the levy increased to 7%. The levy is payable on demand within 2 months, though arrangements may be made for the payment of the levy by the owner of the site by instalments. If not paid, the levy shall be recoverable as a simple contract debt through the Courts. Any levy due will remain to be a charge on the land until paid.
From 2019, the owner of a vacant site who receives a demand for payment of the levy may appeal against same to An Bord Pleanála within 28 days of the date of the demand on grounds that the site is no longer vacant or that the calculation of the levy is incorrect. If ABP upholds the appeal, then either the entry shall be removed from the register and the demand cancelled or it will advise the Council of the correct amount of the levy and an amended demand shall issue.
How can a site be removed from the Register?
At any point, the owner of a vacant site can notify the Council if the site is no longer vacant or idle. If the Council is satisfied that the site is no longer a vacant site, it shall cancel the entry on the Register.
What is the Appeal Process?
The process of applying the Vacant Site Levy allows for two opportunities to appeal to An Bord Pleanála. The first opportunity is within 28 days of receipt of any Section 7(3) notice. The second is within 28 days following receipt of a demand for payment of the levy.
In the case of those that have appealed, entry on the register shall not take effect until the appeal is finally determined by ABP.
There is also an opportunity to make a submission to the Council, within 28 days of receipt of the Section 7(1) notice.
There is also an opportunity to appeal the market valuation of a site, to the Valuation Tribunal, following receipt of a Section 12(4) notice.
What is the difference between Vacant sites and Derelict Sites?
A vacant site differs from a derelict site in that under the Derelict Sites Act, a derelict site is any land that "detracts, or is likely to detract, to a material degree from the amenity, character or appearance of land in the neighbourhood .... because of: Structures which are in a ruinous, derelict or dangerous condition, or the neglected, unsightly or objectionable condition of the land or of structures on it, or the presence, deposit or collection of litter, rubbish, debris or waste." The vacant site levy is an activation measure aimed at encouraging landowners in urban areas to develop residential or regeneration land primarily for the purposes of housing, whereas the derelict site levy is aimed at improving the character of an area, through for example addressing eyesores and sites that are a source of anti-social behaviour.
Where can I find out more?
Anyone with a query in relation to the Vacant Site Levy should contact the Planning Department on (056) 7794010 or email firstname.lastname@example.org.
An Information Leaflet for Landowners is available here.
This website will be updated as the process progresses.
View the Register here:
Download the Vacant Sites Register
Urban Regeneration & Housing Act 2015
Planning and Development (Amendment) Act, 2018