Mayo pilot scheme proposed to tackle dereliction

A two-pronged strategy to address derelict properties in Mayo has been proposed.

Independent Councillor Harry Barrett's has set out a number of measures which he says will incentivise owners to sell and make redevelopment highly profitable.

He outlined his strategy at a meeting of the county council's housing strategy policy committee.

1. Encouraging owners to sell

Mayo owners of derelict homes should be given an 18-month window to sell their derelict properties without paying capital gains tax.

This approach mirrors successful tax amnesties, offering a financial exit strategy rather than punitive measures.

If owners fail to act within a short timeframe (e.g. one fiscal year), the government should compulsorily purchase the property at a reduced price, with all costs borne by the owner.

A public register of delinquent owners should be created to 'name and shame' those who let properties remain derelict.

2. Making renovation profitable

A 100% tax deductibility allowance should be introduced, allowing buyers to offset purchase costs against taxes over a set period.

Owner-occupiers should benefit from fully tax-deductible mortgages over 20 years, significantly reducing their financial burden.

Developers should be encouraged to start renovations immediately through a time-sensitive incentive: the earlier they begin, the higher their tax break.

Construction materials should also be tax-deductible to further lower costs.

Overall, he said, the strategy aims to shift the market dynamics by making dereliction costly and renovation, financially, a no-brainer.

Councillor Barrett said Mayo has a big issue with dereliction and he was proposing they go to the minister with this solution, operated as a pilot scheme, to bring properties back into use as homes.

We need to get over-shop renovations underway immediately, he added, and it's time to try something different.

We have a massive problem and it's morally reprehensible to have the levels of dereliction we have at the time of a housing crisis, he added.