SINCE 2011, NAMA has sold enough land for 50,000 homes but over nine tenths has gone undeveloped, according to new figures.

Fianna Fáil's spokesperson on Housing Barry Cowen said the figures show the extent of residential land hoarding which is greatly exacerbating the housing crisis.

2 Fianna Fail's Barry Cowen

Despite the unprecedented demand and persistent under-supply in the market, Mr Cowen said just seven per cent of the potential 50,000 apartments and houses are under construction.

Mr Cowen said: “This is a national travesty and a result of Government housing policy and deference to international investors.

“We know that the cost of land is a key determinant holding back new construction. Despite this the Department of Finance is incentivising investors to sit on sites and not to develop them through the Capital Gains Tax exemption for lands bought prior to the end of December 2014 and held for seven years."

Mr Cowen said site hoarding was particularly acute in some areas, "such as Cork where less than one percent of potential sites are being developed".

“In many counties with large urban areas and high housing demand, such as Waterford, Galway and Limerick there is essentially no construction at any sites sold by NAMA debtors," Mr Cowen stated.

“This problem is compounded as many sites are still not serviced by infrastructure," he added.

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Mr Cowen claimed the €50 million allocated this year by Government via the Local Infrastructure Housing Activation Fund (LIHAF) for servicing new sites is completely insufficient and has been almost wholly taken up by a small number of sites in Dublin.

“Most investors that bought sites off NAMA are sitting on them and waiting until they appreciate in value until the end of the seven year period when they can claim their capital gains exemption.

"The earliest date that properties acquired in the relevant period can qualify for the exemption will be 7th December 2018," he explained.

“Land Hoarding is clearly holding back supply. Fewer than 18,000 new units will be built this year, including just 4,000 apartments, when we need in region of 50,000 to make a dent on affordability, rent and price inflation" Mr Cowen commented.

“I am calling on the Government to reduce the holding period on these sites to four years, which will allow investors the opportunity to sell these sites now rather than in 2018, 2019 and 2020," said Mr Cowen.

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He argued that a new site tax is required to encourage the use of empty sites.

He said: "The Government’s Vacant Site Levy, which will not take effect until January 2019, is nowhere near strong enough to discourage land hoarding in a growing market."