Anne Rabbitte (Galway East, Fianna Fail) | Oireachtas source

I thank the Deputy for tabling this Topical Issue matter. Again, I am taking this matter on behalf of the Minister, Deputy O'Brien. The primary objective of Part V of the Planning and Development Act 2000 is to "ensure an adequate supply of housing for all sectors of the existing and future population". Accordingly, Part V allows local authorities to purchase a percentage of land, at less than the enhanced market value, and use it for social, affordable and cost rental housing. The Part V requirement is currently 20%, with no less than half of this to be used for social housing and the remainder for affordable and cost rental as the local authority deems appropriate.

That said, section 97 of the 2000 Act also provides for an exemption to Part V for developments comprising four or fewer houses or developments on land of less than 0.1 hectare. The purpose of the exemption is to help maintain housing output and supply. A relatively small number of sites in urban areas, smaller than 0.1 hectares comprising a development of five or more houses, have been granted exemptions. However, without these exemptions, the developments would probably have been rendered unviable because of the cost of including social and affordable homes and much needed housing supply would not have been delivered. Such sites already face potentially substantial additional costs in urban settings given the machinery restrictions associated with infill sites, the need to stabilise existing adjoining buildings and conservation requirements.

The Government is committed to achieving compact urban growth and making our towns and cities more sustainable and attractive places for investment and for people to live and work. Urban sprawl and the ribbon development that has blighted parts of our countryside need to be consigned to the past. The national planning framework targets a significant proportion of future urban development on infill or brownfield sites within the built footprint of existing urban areas. In this context, prioritising the development of smaller sites and providing a policy framework and conditions that incentivise rather than stifle such developments is critical.

The Part V exemption is a key enabler in this regard. It facilitates the development of very small brownfield sites and in turn creates new homes, builds economic activity and reduces social decay. Removing the exemption will likely prevent such sites being developed. In urban settings, these sites tend to be already serviced, making them ideal for development. The lack of suitable serviced sites is generally understood as one of the primary obstacles to housing delivery. Moreover, removing the exemption may only marginally increase the capture of Part V units in dense urban locations, including in Dublin city, where brownfield and infill development on sites of 0.1 hectare or less takes place.

Accordingly, given the limited additional return of social and affordable housing that would result from removing the exemption, coupled with the potential for unintended consequences and undermining housing supply, I suggest the exemption in respect of such developments and sites should be retained. However, there may be merit in considering the potential to modify the exemption and the scope for limiting it in larger urban areas, including Dublin, where urban density guidelines and changes to height restrictions may mean that these sites can contain larger numbers of dwellings than was previously foreseen. To this end, I have asked the Housing Agency to consider the scope and merit, if any, of modifying the current Part V exemptions. The conclusions from this work will be considered in the context of other changes that may be brought forward on Part V in due course.

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