State to take half of increased value of land rezoned for housing

[Mocame]

After the property crash the Department of Housing instructed lots of local authorities to de-zone land which had been zoned for housing where the Dept felt that residential zoning was excessive. The Dept can do this my ministerial order. In addition since the planning regulator was set up a couple of years ago he has been very energetic in telling local authorities not to engage excess zoning in or to de zone excess zoned land. The regulator can also instruct them to do this.

Local authorities are currently working on their new development and they were given an extra year to do this because of Covid. My feeling is that these will include a decent amount of additional zoning to provide for the increase in population since local authorities' development plans were last revised six years ago, which will come under the auspices of this provision.

In Dublin all of the industrial and commercial land along the Nass Road are due to be rezoned as residential. If a 50% tax on the value of the uplift on these sites is applied that will generate a nice chunk of money to sort out Dublin's water infrastructure.

 

[Brendan Burgess]

A developer's perspective in today's Irish Times

Michael O’Flynn: ‘Land value sharing’ proposals will increase house prices

Plans yet another example of decision makers just seeking to make headlines

www.irishtimes.com

Consider for a moment the central thrust of the Government’s argument- in order to make more land available for housing, we are going to disincentivise its sale and in order to make housing more affordable, we are proposing to heavily tax the sale and development of that land necessary to build that housing.

An ugly populism has developed in the national debate on housing, which sees any measure seen to “punish the developer classes” as a good move, even when there is a blindingly obvious case against its implementation. This latest proposal is borne out of an anti-developer bias that is now distorting policy to the detriment of those trying to buy a home for themselves and their families.

If this idea will mean the delivery of more homes, let them spell out the number of new houses that will be built as a result of its implementation and when.

Michael O’ Flynn is a property developer and chairman and chief executive of the O’ Flynn Group

 

[NoRegretsCoyote]

I thought this part was interesting. It's a trope to claim that "the Kenny Report has never been implemented" but he demolishes this:

Significant changes have been introduced since Judge Kenny made his recommendations nearly 50 years ago. Firstly, capital gains tax on the sale of land achieved the purpose of the “betterment” tax recommended in the Kenny report – since 2008, the rate of CGT has increased from 20 per cent to 33 per cent.

Secondly, the “right” to planning permission on zoned land and to compensation in lieu have been abolished.

Thirdly, let us not forget that development levies....were recommended by Kenny and have been in place for more than 20 years.