DUBLIN: Minister for Housing Darragh O’Brien is to enact stricter legislation in order to reign in speculation and cool the property market. While the housing minister claims to be bringing about reforms that will radically change the housing sector, there are indications that it will eventually pose a new challenge to those willing to buy a home.
The measures, which are likely to be unveiled in the coming weeks by Housing Minister, would require owners and developers to pay the government up to half of the rise in the price of land that is being converted for housing.
Although the government intends to break the habit of seeking residential zone permits after purchasing low-cost land and raising project prices altogether if permission is granted, it is alleged that the government is issuing licences to impose the burden of such increased prices on those who are finally waiting to buy a home.
According to reports, the law, which will revolutionize not only the housing sector but also Ireland’s socio – economy, has received the green light from Taoiseach Micheál Martin, Tánaiste Leo Varadkar and Green Party leader Eamon Ryan. The government aims to bring the draft laws to the Dáil and Seanad by early 2022.
Is the benefit of land price hike confined to the private sector?
The value of private land increases significantly when there is zoning and investment by public authorities, but the government does not benefit from it. The move by Minister O’Brien is intended to benefit the country.
The minister aims to reset the most fundamental terms of the property market, which have been dysfunctional for decades. Legislation will be enacted as soon as preliminary legal advice is received from the Attorney General.
Legislation is based on the Kenny Report
The Kenny Report of the 1970s, which is considered an important document in controlling property prices, suggested some similar measures but were never advanced.
The new initiative, dubbed “land value sharing,” will act as the centrepiece of Hosing Minister’s delayed housing masterplan. It is expected to be published in late August or early September.
As a result of the government’s latest move to address the housing crisis, homeowners will only benefit if they do not buy non-zoning land and significantly increase prices. But it is argued that the measures would be tantamount to adding fuel to the fire.
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