Dáil Éireann Debate, Tuesday - 5 April 2022
301. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if he will report on the Housing for All objective for 20% of all developments to be set aside for affordable and social housing. [17529/22]
Amharc ar fhreagraThe primary purpose of Part V of the Planning and Development Act 2000 (as amended) is to capture a portion of the increase in land value resulting from the granting of planning permission for residential development. Part V allows local authorities purchase a percentage of land at less than the enhanced market value, with such land used thereafter to deliver social and affordable housing.
In line with Government commitments, the Part V provision was increased, via the Affordable Housing Act 2021, from 10% for social housing to a mandatory 20% for social, affordable and cost rental housing requirements. The link to a specified percentage need in the Housing Strategy reflected in the Development Plan objectives was removed, ensuring the full share of the planning gain could be captured for the State on all applicable sites. The amended Part V provisions now require at least half of the planning gain to be applied to social housing provision, with the remainder to be applied to affordable housing, which can be affordable purchase, cost rental or both.
The amendments came into effect on 3 September 2021 and apply to land purchased before 2015 and on or after 1 August 2021. Transitional arrangements have also been introduced and provide that the previous 10% Part V requirement will continue to apply to extant planning permissions and land purchased between 2015 and 2021. Near term supply will not be affected by these changes; however, this will change in 2026 when the 20% Part V requirement will apply to all land.
This approach taken is balanced and fair, allowing supply to come forward at pace while also ensuring the State derives as much benefit as possible for social and affordable purposes.
