Dáil Éireann Debate, Tuesday - 7 November 2023
665. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage if he will be introducing 'use it or lose it' rules to strip developers of planning permission on land they have failed to develop; if so, when these rules will be introduced; and if he will make a statement on the matter. [48313/23]
Amharc ar fhreagraPlanning permission is generally granted for a five year period during which development must be commenced and substantially completed. There is a significant number of planning permissions in place for residential development that remain unimplemented, including a significant proportion in the Dublin area.
Since the publication of Housing for All, the Government’s plan for housing, in 2021, the Government has focused on bringing about changes to encourage activation of permissions and land for housing.
The RZLT is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing. The tax measure was developed further to an action contained in Housing for All, to increase housing supply.
The tax measure, which will be levied at 3% of the market value of the zoned land, is intended to encourage activation of planning permissions on suitably zoned and serviced lands and where the lands do not have the benefit of planning permission, to encourage engagement by landowners with local authorities with a view to gaining planning permission.
Land which is considered to be suitably zoned and serviced lands are indicated on maps which have been prepared and published by local authorities for their respective functional areas. Draft maps were published on 1 November 2022, Supplemental maps were published on 1 May 2023 and Final maps of land in scope will be published on 1 December 2023. Liability to the tax will commence on 1 February 2025, subject to enactment of Finance Bill 2024.
Where development is not commenced on the identified land, the landowner will be subject to a tax of 3% of market value annually, which will be administered by the Revenue Commissioners.
The tax will operate in conjunction with other measures and legislative provisions, including amendments to Section 42 of the Planning and Development Act 2000 in 2021 which mean that the 5 year duration of a planning permission can only be extended once commencement of development has occurred and substantial works have been undertaken, effectively introducing a requirement to commence a development in order to avoid the planning permission lapsing.
The tax will therefore incentivise landowners to either develop land, or to sell it to someone who will develop it, and to gain and commence planning permission to ensure they are not subject to a 3% annual tax liability on their land.
