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Builders say housing prices will increase by up to 35% as the government gives a thumbs up to developers’ plans to buy land and increase prices

Dublin: Various construction industry federations have warned a Parliamentary (Oireachtas Committee) committee that the 30 percent Land Value Sharing (LVS) charge proposed to be imposed on newly developed housing estates will increase house prices again if it comes into effect.

Owners of newly developed land must file a statement detailing the land’s previous cost. According to the law, the pre-existing price and the value after the residential zone must be specified. After that, an additional price of 30% will be imposed. This is the reason why construction sector organisations have warned that the price of each house will increase by up to 35 percent.


The government has announced plans to charge a 30% surcharge on such land, including in the suburbs of Ireland, to buy land that is not included in the residential zone and when councils plan to convert such land into the residential zone, adding value to the investments of developers who previously bought land at a nominal price and ultimately increasing the profit of the builder. ‘Land Value Sharing and Urban Development Zones Law Making’ is in the pipeline.

A LVS of 30% will be levied on the difference between the existing price and the price after residential zoning.

Reason for objection.

The government intends to charge up to 30% of the difference in market value if it is converted into a residential zone. Actually, those who bought the land should have received that amount. The government is introducing a law that will charge 30% tax on the price difference, exceeding their expectations. The goal of the government is to prevent price gouging through speculation.

According to the Irish Construction Industry Federation, the law will prevent more people from investing in land. CIF also claims that it will increase the value of each house by between €8,000 and €35,000.

According to the government, the aim of the new law is to prevent developers from increasing the price beyond a certain limit from the previous purchase price.

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