Residential Zoned Land Tax
A delay in the implementation of the Residential Zoned Land Tax (RZLT) as part of Budget 2025 appears to have been pulled back after internal negotioations between Government coalition members this week. Minister for Finance Jack Chambers had previously indicated that the RZLT would be delayed for a further year while implementation issues were resolved. However, recent discussions since this was announced indicate the implementation of the tax is to proceed, with the potential to carve out for actively farmed land. It is notable that the outcome of discussions over what consistute’s ‘actively farmed land’ may not be seen until the publication of the budget. If and when it comes into effect, the tax will charge landowners 3% of the market value of land which is zoned for housing, but has not been developed. MKO will continue to monitor this ongoing matter as it progresses.
Bat derogation licenses
Following the judgement on European Court of Justice Case C-166/22, a new approach to Bat Derogation Licenses in the planning process is now required. The case concluded that where a potential need for a bat derogation license is identified prior to granting development consent, it is now required as part of the planning application. Previously these licenses would have been managed at the conditions compliance phase. As such, projects with a likely need for bat derogation licenses should plan to have bat surveys completed and the license received before lodging a planning application. MKO has already successfully assisted a number of clients with progressing projects through this new hurdle in the planning process and is available to discuss the management of this new challenge with current and future clients.
Population growth exceeds housing provision by 1 to 4
Analysis by Savills Ireland revealed that Ireland’s population growth is almost 3.8 times greater than the number of homes being built. The report identified Ireland as an extreme outlier among other advanced nations in terms of the severity of its housing shortage. The next worst country was Spain, which delivered 1 unit per every 3.4 new people, and Canada which delivered 1 unit per every 2.9 people. Despite this, Ireland ranked in the middle of the table for the average decline in housing affordability, with a differential of 40% between the growth in housing prices and income. In comparison, Canada faced a differential of 81%.
Key consultation per the OPR
Carrick-on-Shannon and Cortober Joint Local Area Plan
County Leitrim and County Roscommon have issued the draft Joint Local Area Plan 2025-2031. This LAP will be the first joint Plan for the town and will emphasise both sides of the River Shannon to focus on guiding development in both Carrick-on-Shannon and Cortober. The draft joint LAP has an objective to set out the overall strategy for the proper planning and sustainable development of this settlement through 2031 and into the future. Submissions on the draft Plan can be made before Friday, 4th October 2024