Seanad debates

Tuesday, 5 March 2024

Nithe i dtosach suíonna - Commencement Matters

Development Contributions

1:00 pm

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

Boosting supply is key to addressing the problem at the heart of the housing system. Housing for All has set an average annual delivery target of 33,000 homes per year over the period up to 2030. In this context, it was noted early last year that some permitted developments were not being commenced. This appeared to be due to increased housing construction costs. Construction inflation, including both labour and materials costs, arose from global supply issues as well as other related viability issues. On 25 April 2023, the Government approved additional measures under the Housing for All action plan to incentivise the activation of increased housing supply while also addressing cost and viability issues faced by the construction sector. These measures included the introduction of temporary, time-limited arrangements for the waiving of local authority section 48 development contributions and the refunding of Uisce Éireann water and wastewater connection charges. The new schemes apply for one year to all permitted residential development that commences on site between 25 April 2023, the date of the Government decision to approve the measure, and 24 April 2024, which will be upon us quite shortly, and is completed not later than 31 December 2025. This end date is to facilitate large schemes to be speedily brought forward and progressed while also incentivising their completion as quickly as possible within a reasonable timeframe, thus delivering urgently needed housing supply.

Addressing vacancy and maximising the use of existing housing stock is a primary objective of this Government, as demonstrated by the focus given to this priority area in pathway No. 4 of the Housing for All plan. Under the plan, 28 regulations that provided for an exemption for the requirement to obtain planning permission in respect of the change of use of certain vacant commercial premises were extended until the end of 2025. These regulations included a new and additional class of premises eligible to avail of the planning permission exemption, that of public houses capable of providing up to a maximum of nine residential units, as Senator Cummins referenced. In addition, the vacant property refurbishment grant is available for the refurbishment of vacant properties for occupation as a principal private residence and properties that can be made available for rent.

It is not proposed to extend the terms or timeline of the temporary, time-limited arrangements for the waiving of local authority section 48 development contributions and the refunding of Uisce Éireann water and wastewater connection charges beyond those approved by the Government in its decision of 25 April 2023.

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