Minister for the Environment, Community and Local Government, Alan Kelly, announced on 2 October 2014 proposed reforms to Part V of the Planning and Development Act, 2000. Part V requires developers to provide 20% of houses built in a qualifying development to social and affordable housing.

Under the proposed reforms, developers will have to allocate 10% of houses to social and affordable housing. The proposed change will see developers obligations under Part V halved however developers will no longer be able to avoid their Part V requirements by using land swaps with or making cash payments to local authorities. In addition, the proposed changes will require that social and affordable housing be located predominantly on the site of the development.

In addition, the proposed legislation intends to introduce a vacant site levy which will allow local authorities to apply a levy of 3% of the market value of a site or to vacant shops if they have not been developed within a year. Both levies will only apply to towns with a population of 3,000 or greater.

The levy can be increased every year up to a maximum of 6%. It appears the introduction of the levy is to incentivise development of vacant sites and shops and to reduce land hoarding.

The timeframe for the introduction of this legislation is early 2015.

For more information contact Commercial Property. 

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