Communities to get a greater share of increases in land value under new bill
Communities would get a greater share of increases in land value arising from local authority planning decisions and public investment in infrastructure under legislative proposals from the government.
The general scheme of the Land Value Sharing and Urban Development Zones’ Bill was published yesterday following its approval by ministers last week. It forms part of the government’s Housing for All plan.
This landmark legislative proposal introduces measures that respond to long-standing issues arising from the impact of ‘hope value’ in the land market, which leads to speculation that affects the value of land and as a result, the viability of building, both of which feed into the cost of housing.
The proposed measures will address the situation whereby significant increases in land value arising from zoning and permitting development are not shared adequately with the State, and it is ultimately those purchasing or renting new homes, and new communities where the need for infrastructure and facilities is often greatest, that bear the cost.
These issues have been flagged since the Kenny Report in 1973, and more recently by others including the National Economic and Social Council (NESC), who are of the view that “Ireland must bring about a fundamental change in its system of urban development, land management and housing provision”.
Housing minister Darragh O’Brien said: “This proposed new approach to active land management will lead to fundamental systemic changes in the way we think about land and development.
“In combination with other measures and in particular the residential zoned land tax, it will give rise to a seismic shift that will make a real difference to our society as a whole, through influencing the delivery of increased and more affordable housing supply and the creation of sustainable and well balanced communities for our citizens.
“Crucially, at the heart of this proposal is the provision that the ‘uplift’ in land value will benefit communities through funding for essential infrastructure and indeed social and affordable housing where appropriate.”