‘Trophy homes’ in Leitrim should pay: Councillor calls for holiday home tax amid rural decline

With a nationwide housing crisis being the most pressing issue of our time, and with the crisis strongly felt here in Leitrim, anyone can see that simply not enough homes are being built. 

It will likely take decades to recover before housing supply improves, construction and rental costs fall, and other barriers such as high water connection charges are fully addressed. 

Failed promises by successive governments are at the forefront of people’s minds, particularly young people in Ireland who fear they will never be able to buy or build a home in their own country. 

In Leitrim, this has knock-on effects in towns and villages as more people leave for other parts of the country or abroad. As populations decline, local facilities, particularly schools, suffer, with ageing populations unable to sustain enrolment.

This challenge of rural schools closing, and the looming threat of further closures in Leitrim, led Cllr Justin Warnock to propose a controversial motion at the September meeting of Leitrim County Council. 

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He sought support to call on Minister for Housing, Local Government and Heritage, James Browne TD, to introduce legislation imposing a €1,000 annual tax on holiday homes, with revenues retained by local authorities to fund programmes aimed at repopulation in Leitrim.

While considered understandable, the proposal was seen by some as harsh and unlikely to achieve its intended outcomes. “I’m not talking about holiday homes that are being rented out. I’m talking about holiday homes that are trophy homes. These are people with wealth,” said Cllr Warnock.

Schools were his primary motivation for putting forward the motion. He highlighted that 16 primary schools in Leitrim have enrolments of fewer than 40 pupils. “People buying holiday homes have usually made their money, and they’re buying houses. We should be promoting to get our young people back, because the old people aren’t going to fill the schools,” he said.

“We need to have these schools stay open and the only way we can do that is having young families move back in.”

He described how wealthy buyers purchasing “trophy homes” in rural Leitrim displace local families. “84 percent of people in Leitrim live in rural areas. These 16 schools are in rural areas and if we don’t do something they’ll end up like Creevelea and all these other schools that are closed. We cannot sit on our hands and do nothing, this is an opportunity to do something,” he urged.

Cllr Eddie Mitchell seconded the motion, stating, “While we want to support tourism, we have to make sure that as houses come up for sale, they’re not being bought to be left sitting there.”

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However, the motion sparked concern and division among members who argued it would unfairly penalise people with family or personal ties to Leitrim who contribute to the local economy.

Cllr Mary Bohan cited an example of a family with a second home in North Leitrim who “worked hard all their lives” to afford it. “They come several times a year along with extended family and friends. They shop locally, they come out to restaurants and socialise and pay their property tax,” she said.

She further pointed out the lack of hotels and limited B&B accommodation in North Leitrim. “The people that I know have a holiday home, and they use it. They’re not responsible for the housing crisis,” she added.

Cllr Cormac Flynn supported the motion, though “reluctantly.” Referring to Cllr Bohan’s statement, he countered, “I know people who have been working hard and can’t afford a home or rent. Hopefully if the motion is successful, the homes that are lying idle might make people think what’s the point and rent it to someone who can make a benefit out of it.”

Cllr Prior raised concerns about the possible impact on local tourism, citing the Ballinamore Family Festival, where the local population triples annually. “If we’re seen to support this motion, are these people going to take one less holiday in our location?” he asked.

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Although Cllr Warnock ultimately withdrew the motion, he stood by his central argument. “If someone doesn’t do something, those 16 schools will close in the next ten years. There’s loads of holiday homes in Kiltyclogher, yet that school is about to close. No one wants to upset anyone but no matter when you try to move forward, you’re always going to upset people.”

For many, the frustration remains that while some can afford second or even third homes, countless others are struggling daily to pay rent, let alone save for a mortgage due to sky-high costs. 

The responsibility for solving the housing crisis ultimately lies with the Government to build, supply, zone, and fund housing, and for local authorities to deliver homes.

The solution, many argue, is clear and is not being delivered, and rural counties like Leitrim are left facing the harshest consequences.

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