Ivana Bacik (Dublin Bay South, Labour)
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311. To ask the Minister for Housing, Planning, and Local Government his views on the practice of developers not commencing construction after they have received planning permission; and his plans to ensure that approved planning permissions result in the timely construction of homes. [8509/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Increasing housing supply and delivering sustainable, affordable homes for people is the Government’s top priority. Housing for All is a plan with real ambition, guaranteed investment and fresh ideas to deliver housing for real people and create a long-term sustainable housing system. Guaranteed State investment of over €4 billion a year in housing is aimed at increasing supply. This increase in supply will be key to meeting demand, moderating price inflation, and addressing affordability for those wishing to rent or buy their own home.

Two key measures delivered since Housing for All was launched in September 2021 will facilitate the activation of planning permissions, with the aim of contributing significantly to housing supply.

Firstly, the Residential Zoned Land Tax (RZLT), a key commitment under Housing for All, is a new tax which was established in Finance Act 2021. It is designed to activate suitably zoned and serviced land for housing and is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. The primary aim of the tax is as an active land management measure, to incentivise landowners to activate existing planning permissions for housing on identified lands, or to engage with planning authorities and seek planning permission on land which is suitably zoned and appropriately serviced. Landowners will be liable for the tax even if they have planning permission, until such time as the permission commences development on site.

The Department of Finance leads on its implementation with the involvement of my Department, the Revenue Commissioners and the 31 local authorities. In this regard, my Department published section 28 Guidelines for Planning Authorities on the Residential Zoned Land Tax on 29 June 2022, which provided guidance on identifying the land which is in scope for the tax. A copy of the Guidelines can be accessed on my Department’s website at the following link: www.gov.ie/en/publication/fbc41-residential-zoned-land-tax-guidelines-for-planning-authorities/

The implementation of RZLT consists of two phases as set out below.

Phase 1: the preparation and publication of maps by the 31 local authorities identifying land within the scope of the measure. All 31 local authorities published draft maps on 1 November 2022. This is being followed by a period of consultation during which landowners can make submissions to the relevant local authority. The initial mapping process will conclude with the preparation and publication of final maps on 1 December 2023. From 2025 onwards, local authorities will update the maps on an annual basis.

Phase 2: the administration of the tax by the Revenue Commissioners. This will commence in 2024, with the initial liability date for the tax arising on 1 February 2024 and the first pay and file date following on 23 May 2024.

Further details with regard to the RZLT, including a full description of the submission process and milestones, can be accessed at the following link: www.gov.ie/en/publication/fbad0-residential-zoned-land-tax/

Secondly, The Croí Cónaithe (Cities) Scheme supports the building of apartments for sale to owner-occupiers. The scheme aims to bridge the current “viability gap” between the cost of building apartments and the market sale price (where the cost of building is greater). The scheme is targeted principally at activating planning permissions already in place for such homes.

The scheme launched in May 2022 with an Expressions of Interest process which is being managed and administered by The Housing Agency on behalf of my Department. Since receipt of applications in June 2022, The Housing Agency has been undertaking the various appraisal stages which deal with the following:

1. Eligibility of proposals

2. Ranking of suitable proposals and

3. A detailed due diligence process leading to designation (current stage).

On 6 February 2023, my Department received notification from the Directorate General for Competition in the European Commission (DG COMP) that the scheme has been deemed compatible with the internal market. This positive decision enables The Housing Agency to actively progress matters on processing and concluding Stage 3 of the Scheme and will allow the building of designated apartments to get underway.

Per the Housing for All Action Plan Update (November 2022), a second call under the scheme is expected to be announced by end Q2 2023.