Skip to main content

Millions Lost In Land Dezoning...

Millions wiped off value of land in dezoning...

DEVELOPERS have taken massive hits on the value of their land banks, as one-in-three local authorities have dezoned land earmarked for development.

The moved has wiped hundreds of millions off the value of land across the country -- with taxpayers facing a massive bill for NAMA loans linked to land returning to agricultural use.

Planning Minister Willie Penrose said yesterday that 12 of the State's 34 local authorities had made changes to their development plans which has resulted in thousands of sites now being classed as unsuitable for development.

Last year, local authorities were ordered to dezone, rezone or forbid development on massive land banks to comply with tough new planning guidelines which set out where houses and commercial units could be built.

The move came because councillors had zoned enough land during the boom years to build more than a million homes that were not needed.

Councils had previously zoned more than 44,000 hectares of land for housing over the past decade.

This was 31,633 hectares more than was actually needed.

Any development land that is dezoned instantly loses a huge portion of its value.

This equates to enough land for almost 1.5m houses and apartments -- but just 400,000 units are needed up to 2016, according to the Department of the Environment.

Difficult

Speaking at the National Planning Conference in Galway, the minister said that 12 local authorities have already changed their development plans, adding that all 34 councils will have dezoned land by the end of October.

"I recognise that this is a difficult task for local authorities but I am encouraged at the progress made to date," he said.

A reliance on development levies along with pressure from developers and landowners led to a frenzy of rubber-stamping during the boom. One-third, or €20bn, of the toxic property loans going into NAMA are linked to land, meaning taxpayers could be stuck with massive loans linked to fields that may never be developed.

Mr Penrose also said that a blueprint to tackle ghost estates is to be published next week.

More than 2,800 housing estates have been identified where construction has started but has not been completed.


Report by Paul Melia, Brian McDonald and Treacy Hogan - Irish Independent

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu

Property Tycoon's Dolce Vita Ends...

Tycoon's dolce vita ends as art seized... THE Dublin city sheriff has seized an art collection and other valuables from the Ailesbury Road home of fallen property developer Bernard McNamara. The collection will be sold to help pay his debts. The sheriff, Brendan Walsh, is believed to have moved against the property developer within the past fortnight, calling to his salubrious Dublin 4 home acting on a court order to seize anything of value from his home to reimburse his creditors. The sheriff is believed to have taken paintings from the family home along with a small number of other items. The development marks a new low for Mr McNamara, once one of Ireland's richest men but who now owes €1.5bn . The property developer and former county councillor from Clare turned the building firm founded by his father Michael into one of the biggest in Ireland. He is the highest-profile former tycoon to date to be targeted by bailiffs, signalling just how far some of Ireland's billionai

I fear a very different kind of property crash

While 80% of people over 40 own their own home just a third of adults under 40 do. This is disastrous for social solidarity and cohesion Changing this system of policymaking requires a government to act in a way that may be uncomfortable for some. Governments have a horizon of no more than five years, and the housing issue requires long-term planning. The Department of Public Expenditure and Reform was intended to tackle some of these problems. According to its website its remit is to “drive the delivery of better public services, living standards and infrastructure for the people of Ireland by enhancing governance, building capacity and delivering effectively”. So how is the challenge of delivering homes for people in 2024 and beyond going to be met? The extent of the problem is visible in the move by companies, including Ryanair, to buy properties to house staff. Ryanair has, justifiably, defended its right to do so. IPAV has long articulated its views on how to improve supply an