Local Property Tax Freeze Extended to 2029, Council Exceeds Social Housing Targets

Dublin City Council has decided to freeze the Local Property Tax (LPT) rate until October 2029, a move aimed at providing financial relief to homeowners and budgetary certainty for the council. This decision comes ahead of anticipated changes to the LPT scheme proposed by the Minister for Finance, Paschal Donohoe.

LPT Freeze Offers Homeowner Relief and Budgetary Stability

The decision, championed by Councillor Dermot Lacey and supported by Fianna Fáil, will see the current LPT rate maintained for the next five years. Councillor Lacey stated that the freeze would ease the financial burden on homeowners and provide council chief executive Colm Ward with greater certainty in his annual budget planning.

This proactive measure by Dublin City Council precedes proposed changes to the LPT scheme by Minister Donohoe. these changes include a revaluation of properties, set to take effect on November 1st, with the new valuations applying from next year and remaining in place for a five-year period.

While most property valuations are expected to see an increase, Minister Donohoe has sought to mitigate concerns about the impact on homeowners. He indicated that approximately 96% of properties would remain within their existing valuation bands. For the majority of property owners, those with properties valued at €525,000 or lower on November 1st, the increase in their annual LPT charge is projected to be between €5 and €25. Properties exceeding this valuation threshold, or those that move into a higher valuation band, will experiance a more significant increase in their LPT liability.

Councillor Lacey acknowledged that the review of the LPT was already underway. Though, he emphasized that the council’s decision brings much-needed certainty to the annual discussions surrounding the property tax. He also noted that while the initial ambition was to eliminate the charge entirely in the coming years, this objective will now be a matter for the next council to address.

Social Housing Delivery Surpasses Targets

In parallel with the LPT decision, dublin City Council has also reported significant achievements in its social housing delivery program. The council has exceeded its target of 1,821 new social homes for the period between 2022 and last year, delivering a total of 1,825 new social homes.

A progress report on the council’s housing delivery action plan for 2022 to 2026 revealed that the number of new social homes scheduled to be completed by the end of next year stands at 3,700. These homes are being provided through a multifaceted approach, encompassing direct construction by the local authority, collaborations with approved housing bodies, provisions under Part V of the Planning and Progress Act, and leasing initiatives.

As of the end of last year, the local authority had directly built 566 new homes and acquired 15 “turnkey” properties, which are ready for immediate occupation.Approved housing bodies contributed 123 newly built homes and secured 528 turnkey properties. Furthermore, the implementation of Part V of the Planning and Development Act, which enables the council to purchase properties from developers at cost price, resulted in the delivery of 593 homes.