In reference to Michael O’Flynn backs tax on those hoarding development land by
Ciarán Hancock on June 21, 2017 in the Irish Times.
Michael O’Flynn, a property developer, gives support to a tax to those who are hoarding land and waiting until the housing prices increase. This tax has to be carefully composed in order to avoid taxing those who can’t build because of issues surrounding planning, lack of infrastructure, or zoning. This would be difficult to police and enforce due to fraud or proof of these issues.
O’Flynn also suggested the government to create a government separate entity to help coordinate the planning and zoning issues as well as manage infrastructure spending. This is so the two processes can better work together and help combat the housing issue.
If the government will reduce the VAT 4.5% from 13.5% to 9%, Michael O’Flynn said he would immediately decrease his housing prices. With a lower VAT tax, it will become more affordable for people leading developers to be more motivated to bring more housing. For example, if the VAT tax is reduced to 9% it will reduce €12,000 off of a €300,000 house.
Another issue O’Flynn brought up was that the current 3.5 income ratio should be increased to 4.5 income ratio, a ratio allowed in the UK.
O’Flynn brought up many points that he believes is wrong in our current housing market. A pricing bubble maybe amidst while everyone’s focus is on the Help-to-Buy scheme. With focus on the rest of the market, we can pressure the government to adapt regulations to the housing market as needed. This will help to avoid another housing crash.