Empty shops need more than a new tax

PROPERTY

Property Insights by Johnny Gannon, Fair Deal Property

Growing up in Tuam in the 1980s, I remember a shop on every street corner. My family has been in Tuam since the 1800s, and like most people from this town, I’ve watched it change: supermarkets first, then out-of-town retail parks, followed by online shopping, all contributing to the demise. Now Tuam, like so many market towns, has far too many empty commercial buildings, hollowed out by changes in technology and consumer behaviour.

The Government’s new Derelict Property Tax, due to go to Cabinet shortly, will replace the existing Derelict Sites Levy at a minimum of 7% of market value. The real change is who collects it: Revenue will administer it directly, rather than local authorities chasing it themselves. Tuam falls into the first phase of towns covered, those with populations over 4,000, so this is directly relevant for Tuam and other regional towns.

But taxing dereliction is by no means a panacea. Even where it forces a sale, there is no guarantee the building gets a new lease of life. The sale changes who holds the deeds - it doesn’t create a viable business inside the building.

That’s why taxation alone won’t be sufficient. The real problem is broader and deeper: the same shift in consumer behaviour and technology that emptied our high streets in the first place. What would genuinely help would be proper Government support for independent retailers, not just in Tuam but across all regional towns, including a meaningful rates reduction for businesses willing to trade from these empty buildings.

There’s a quieter problem too playing out alongside the boarded-up windows. Many shops still trading in Tuam survive because the proprietor also owns the building, so there’s no rent to pay. That raises an obvious question: where is the next generation of retailers coming from? If a business only works because the premises is rent free, what happens when no one in the family is willing to take it on? In many cases it is clear that we are witnessing the last generation of viable businesses in the town.

We also need to be careful what regeneration actually means. There’s a risk that empty shops simply get converted into second rate dwellings, turning Tuam’s once vibrant streetscape into a residential dormitory. A famous comedian once said there is no such thing as towns anymore. Without meaningful supports for our local retailers his words may well prove to be prophetic.

For more, visit www.fairdealproperty.ie.