Legislation on derelict sites/properties needs to be overhauled

The legislation governing derelict sites/properties is hampering local authorities from acquiring such properties and turning them into badly-needed social housing.

A senior Cork County Council official has said legislation aimed at ridding the country of derelict sites/properties needs to be overhauled as “it is not fit for purpose".

Niall Healy, the council's director of services for municipal district operations and rural development, said there are many difficulties with the legislation which is hampering local authorities from acquiring such properties and turning them into badly-needed social housing.

He said the definition of a derelict site/property was so broad that it made it very easy for the owner to challenge a council decision to list it as derelict.

There can also be serious problems identifying the actual owner.

“The Land Registry was established in the 1960s and therefore from then on it's easy to identify the owner. But before that people had deeds which are very hard to trace,” Mr Healy said.

He said this often entails countless hours of research and was very costly. “It's quite a massive undertaking. It's a legal quagmire,” he added.

Mr Healy pointed out that where an owner is identified, local authorities can issue a levy (annual fine), if the property is not brought up to scratch.

The council has to get a professional valuer to come up with a price, which can be countered by the owner. If this happens it then goes to the Valuations Office in Dublin, where it joins a very lengthy queue in the arbitration process. This leads to further delays.

He said the problem with the levy is that it is set at a miniscule percentage of the actual value of the property and therefore not big enough to be a deterrent.

Some owners will pay it because it keeps the council off their backs, while others won't bother and know it is unlikely the council will chase them for the cash, as it would cost it more to employ a debt collection agency.

Mr Healy pointed out that another issue involves banks who might have a claim to mortgage arrears on a property.

Under the Land and Conveyancing Act 2009, a financial institution is deemed as the preferential creditor and can sell off the property and the council doesn't get any of the money it has levied in fines.

He added that a few years ago the government championed the concept of getting more people to 'live over the shop' and to regenerate derelict buildings.

“We are very conscious of the need to do something to turn these sites into housing for the homeless. It would also help breathe life back into towns and villages where there are a number of derelict properties. But there needs to be a serious overhaul of the legislation by central government,” Mr Healy said.