Brendan Griffin
Question:375. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if he will provide his advice on a matter (details supplied); and if he will make a statement on the matter. [32663/23]
View answerTuesday, 4 July 2023
Questions (375)
Written answers
The decision to zone land for development confers a benefit on relevant landowners, which results in an increase in the value of the land in question, with further uplift in value accruing when planning permission is granted. Such development is generally dependent on the provision of the necessary supporting infrastructure by the State.
Under current legislative arrangements, the principal mechanisms to secure a proportion of the benefit attributable to the decision to zone and permit development on land are via Part V social and affordable housing obligations and through section 48 and 49 development contributions. Development contributions made to the local authority are not sufficient to deliver all of the essential infrastructure that is necessary to enable housing development. Accordingly, Housing Policy Objective 12.1 of Housing for All (September 2021) outlined an action to bring forward measures for the State to share in a fairer way from the land value gains secured through zoning/designation and planning permission decisions, referring to measures previously recommended by the Kenny Report and more recently by NESC.
Government approved an initial General Scheme in December 2021 to set out proposals to introduce Land Value Sharing. The proposals set out in the revised General Scheme (www.gov.ie/en/publication/0ad37-general-scheme-planning-and-development-land-value-sharing-and-urban-development-zones-bill-2022/) published on 14 April 2023 are the result of significant analysis and engagement undertaken since the publication of the initial General Scheme in December 2021, including an economic appraisal and detailed discussion with the Office of the Attorney General, valuation experts and engagement with key stakeholders.
A key challenge in implementing LVS is ensuring that the mechanism captures fair value for the State, but avoids disincentivising housing supply. As a result, the design of the measure was changed from the 2021 proposals to be a ‘zoning uplift’ only with early certainty as to the quantum of the obligation, based on the date of the zoning decision. Landowners will be required to submit a self-assessment of the Existing Use Value (EUV) and Market Value (MV) of the land based on the date of the zoning decision. This will allow for the extent of the obligation, namely 30% of the difference between the EUV and MV, to be calculated at the outset and this should influence transactions thereafter, with the knowledge that the obligation will need to be paid should the land be developed. The valuations will be entered onto a register published by the local authority, which will also bring greater clarity on land values from the outset of the development process.
LVS will be applied as a condition of planning permission, with any obligations secured to be used by local authorities in the provision of infrastructure, services and facilities to enable housing development and to support communities. Certain types of development are to be excluded from liability, namely the development of social and affordable housing and small scale residential and commercial development.
The General Scheme is accompanied by an explanatory memorandum to outline the objectives and details of the proposed measures. The Joint Oireachtas Committee on Housing, Local Government and Heritage has recently completed pre-legislative scrutiny of the proposals. In finalising the draft Bill for approval by Government, the report of the Committee and any recommendations contained therein will be taken into account.
I am precluded from commenting on any particular site or proposal with which a planning authority or An Bord Pleanála is or may be concerned by virtue of Section 30 of the Planning and Development Act 2000 (as amended).