Ireland must build 50,000 new homes each year to address housing needs, according to 76% of property-sector personnel surveyed by Mason Hayes & Curran.
And 56% of those surveyed believe the introduction of residential-zoned land tax will disincentivise the hoarding of residential development land.
The law firm surveyed more than 200 agents, developers and property managers at its 7 December webinar ‘Real Estate, Planning and Development – Reflections and Predictions’.
The event focused on legislative developments, and on how the mismatch of supply and demand in Ireland’s housing market could be improved.
Partner Áine Quigley commented: “Residential-zoned land tax was introduced by the Finance Act 2021 with a view to replacing the vacant-site levy, and has the same aim – to encourage the early development of sites suitable for housing.
Take steps to develop – or pay tax
"Owners or others with development rights of relevant sites must either take steps to develop the land, or pay a tax of 3% of the market value of the land.
"Local authorities published draft maps identifying the relevant sites on 1 November, and we expect a lot more discussion on this topic before the tax becomes payable in 2024."
The event also discussed key ' Housing for All' initiatives, such as 'Land Value Sharing Contributions'.
A total of 75% believe a developer's planning contribution towards 'public infrastructure and facilities' should be set according to the estimated cost of the infrastructure.
Senior associate Jay Sattin said: "While as yet we don't have the exact detail behind this legislation, the Government's General Scheme agreed in 2021 provides an indication.
Planning permission levy
"Broadly speaking, 'land-value sharing' means sharing up to 30% in the increase in the value of land which has been zoned residential or mixed-use, including residential. Landowners will pay this sum as a condition of the grant of planning permission, with the levy to be used by the local authority for the provision of public-infrastructure services in the area, such as recreational or community facilities.
"If this contribution is higher than the developer's current contributions, this will clearly have an impact on viability, and it may also present difficulties in terms of timing for planning applications if, for example, the value of the land keeps increasing."
Under the current legislation, the local authority has to take into account the estimated costs for providing that infrastructure when it is setting the rates for developers' contributions.