Minister for Housing Simon Coveney could solve the housing crisis "immediately" by changing the Capital Gains Tax rate, according to a proposal from a Fianna Fáil senator.
Senator Aidan Davitt has written to Minister Coveney suggesting that the minister has "a tool at his discretion to immediately solve the housing crisis."
Mr Davitt said: "We know from CSO statistics that there are in the region of 250,000 vacant houses in the country.
"I propose that the Government reduce Capital Gains Tax on the quarter of a million houses that are vacant from 33% to 10% for a one year basis."
He has predicted that "going on previous examples of reductions in CGT, that an extra 10,000 to 15,000 vendors would take advantage of this opportunity and sell their properties."
The Westmeath senator believes that by placing a clear time frame of one or two years on the tax cut, property owners would be encouraged to move quickly and sell vacant homes.
Mr Davitt, who is also an auctioneer, said: "This would be a major rapid response to the housing crisis.
"I would add that the units in question had to be vacant for the previous two years so it would not affect existing tenants."
Earlier this week Minister of State for Housing Damien English said it is "not acceptable" that there has always been 200,000-plus vacant properties over the past 20 years.
Mr English said the Government wants "to get these vacant properties back into use, but private people own them, they're not our housing stock".
He added: "We need to try to induce them, to bring them forward and encourage them and provide incentives, and yes we will look at penalties if they don't do that but actually the quickest win is to dangle a carrot and make it attractive for everybody to bring them back into use."
The Government strategy on empty home re-use is expected to be brought before Cabinet within weeks.
