housing

On Sunday 12 September, The Business Post published a piece by John O'Connor, outgoing CEO of The Housing Agency, on recent changes to Part V of the Planning and Development Acts 2000-2020. You can read the piece below.

Paying less for land will provide more affordable housing
John O'Connor

Many of those arguing against the State's new 20 per cent Part V requirement assume that it will increase property prices. In fact it will do quite the opposite.

Land is a limited resource. It is critical that we provide housing that is affordable for people on low to average incomes and limiting the price of land is one way to achieve this. Land can be a significant element in the price of providing a new home, particularly in urban areas.

One way of reducing the cost of land is by what is known as Part V. This legislation allows the State, as well as the land owner, to benefit from an increase in land prices following the granting of planning permission. Part V is a positive measure to limit the price of land.

Part V of the Planning and Development Acts, to give it its full name, has its origins in the Kenny Report from 1973 which maintained that, if local authorities were given the power to buy development land at a reduced price, it would stop land speculation, stabilise land prices and reduce the cost of housing.

The Kenny Report argued that local authorities should be able to buy all development land at a reduced price. Until now, Part V allowed local authorities to buy 10% of each applicable site and the recent changes to Part V will increase this to 20% for sites purchased after 1 August 2021 and which are granted planning permission after 3 September 2021. Local authorities can then use this land to build social and affordable housing themselves, or they pay the developer or builder the costs of building it for them.

This aspect of Part V is seldom discussed. It is often portrayed as an obligation on developers and builders to sell a percentage of privately built homes to local authorities at a discount. A discount which is subsequently paid for by the buyers of the other homes in the development.

This is a misconception, and it is inaccurate.

Under Part V, the developer or builder gets paid the full costs of building each Part V home. The saving to the state or the “discount” comes from the lower price that it pays for the land associated with that home. Instead of paying market value for the land, the state pays existing use value, which is often much lower.

If a new house on a greenfield site is sold for €300,000, the cost of building the house could be €250,000 and the market value of the land associated with the house could be €50,000. If the builder sells this house to the local authority under the Part V agreement, the builder will receive €250,000 to cover the cost of building the house and will receive the existing use value of €2,000 for the land associated with the house. Existing use value is the value of land without planning permission and without the “hope value” of obtaining planning permission.

The knowledge that residential planning permission granted on a site will have a Part V requirement should inform how much developers and builders are willing to pay for that site and should reduce the price accordingly. This was the theory behind the recommendations in the Kenny Report and it carries through to Part V today. The higher the percentage of a site that the local authority can acquire at a reduced price, the lower the value of the site.

Once land is priced correctly when it is purchased, there is no “cost” associated with Part V to be passed on to the buyers of the other homes in the development.

The new 20% Part V requirement will apply to planning permissions granted after 3 September 2021 on land which was purchased on or after 1 August 2021. Planning permissions granted before 3 September 2021 and new grants of planning permission on land which was purchased between 1 September 2015 and 31 July 2021 will continue to have a 10% Part V requirement. After 31 July 2026, there will be a 20% Part V requirement on all new planning permissions granted, regardless of when the land was purchased.

Some of the debate around the increase in Part V assumes that it will increase house prices. In fact, it should assist in cooling the prices paid for land and the provision of affordable purchase housing through Part V may reduce house prices in the long run.

Paying less for land benefits us all.

The Minister for Housing, Local Government and Heritage Darragh O’Brien TD has announced the appointment of Bob Jordan as Chief Executive Officer (CEO) of The Housing Agency. Mr Jordan will take up the CEO position with The Housing Agency next week.

Commenting Minister O’Brien said: “Following on from the publication of the Housing for All Plan the next few years will continue to be a challenging period for all working in the housing sector. Having someone of Bob’s calibre and experience leading The Housing Agency during this critical time will be of great benefit. I would also like to thank John O’Connor for his excellent work as CEO. John’s expertise and knowledge have been invaluable to me and I am glad he has accepted the position of Chair of the soon to be established Commission on Housing.”

Bob Jordan has a strong leadership record in the housing sector. Since 2018 he has been the National Director of the Government's Housing First programme, which provides permanent homes and wraparound supports to people who have experienced rough sleeping and long-term homelessness. Based in Dublin City Council, Mr. Jordan has worked closely with local authorities, Approved Housing Bodies, health services and homeless charities to extend the programme nationwide. Prior to his role in Housing First, Mr. Jordan was Chief Executive of the housing charity Threshold for nearly a decade. He was Special Adviser to the Minister for Housing during 2016-2017.

Commenting on his appointment, Mr. Jordan said: "I am delighted to be taking up the role of CEO of The Housing Agency. The Agency plays a critical role in supporting the delivery of social and affordable housing. In recent years, it has taken on additional responsibilities to respond to the housing challenges we face. With the Government having recently published a new housing strategy, I look forward to working with the Board and staff of The Housing Agency to promote housing supply to meet current and future needs."

Chairperson of The Housing Agency, Michael Carey said: “We are delighted to welcome Bob to The Housing Agency to take on this crucially important leadership position. Bob is a highly regarded housing specialist with over 20 years’ experience of delivering high impact programmes that address complex housing needs.”

Commenting on the departure of outgoing Chief Executive Officer, John O’Connor, who is retiring, Mr Carey added: “John has been an outstanding CEO since The Housing Agency was established in 2012, building a great team of highly dedicated public servants and working closely with the Department of Housing, Local Government & Heritage, local authorities, Approved Housing Bodies and other organisations. The Board of the Agency would like to thank John for his outstanding commitment and service.’

Minister O’Brien recently appointed John O’Connor as Chairperson designate of the Commission on Housing, which will be established later this year.

Part V refers to Part V of the Planning and Development Acts 2000 to 2021. The purpose of Part V is for the State to capture a portion of the increase in land value resulting from the granting of planning permission for residential development. The current Part V legislation provides for local authorities to acquire 20% of this land at existing use value and to utilise this land to deliver homes to those households who qualify for social and affordable housing support. The use of the land for the delivery of social, affordable purchase and cost rental housing satisfies a policy objective of encouraging integrated development and reducing housing segregation.

The Housing Agency and the Department of Housing, Local Government and Heritage, have developed information and resources on Part V of the Planning and Development Acts 2000 – 2021, which are available to the wider housing sector.

Video Resources

Written Resources

	In 2017, guidelines on Part V were issued by the Minister for Housing, Planning, Community and Local Government under section 28 of the Planning and Development Act 2000. These guidelines deal with specific issues, largely in relation to the making of a Part V agreement and covers topics including the options for agreement, net monetary value, compensation paid for land and construction costs. Download Part V 2017 Ministerial Guidelines
	The Part V Resource Pack is a step-by-step guide to making a Part V agreement covering areas including exemptions, requirements for planning applications and documentation to be provided by both sides to assist in negotiations. This third edition has been updated to include all changes to Part V prior to the Affordable Housing Act 2021. A revised fourth edition incorporating the recent legislative changes will be issued shortly. Download Part V Resource 3rd Edition
	Where a local authority and an applicant for planning agree to satisfy Part V through the transfer of homes onsite, the proportion of the "planning gain" or net monetary value achieved through the transfer of those homes must be calculated and it must be determined whether a balancing payment or balancing discount is required to fully satisfy the Part V requirement. For mixed developments of houses and apartments, these calculations can be complex. The Housing Agency has prepared five worked examples of these calculations. Download Part V calculation examples for houses and apartments

Changes to Part V under the Affordable Housing Act 2021

The Affordable Housing Act 2021 made a number of changes to Part V. These changes came into operation on 3 September and are summarised in two infographics, one for the wider sector and one specifically for local authorities which covers the changes to housing strategies:

Download The Housing Agency infographic on changes to Part V.

Download The Housing Agency infographic for Local Authorities on changes to Part V.

Transition Arrangements

Those involved in purchasing land for residential development should be aware of changes to the Part V requirement for social and affordable housing:

• Land purchased on or after 1 August 2021 will be subject to a 20% Part V requirement on planning permission granted after 3 September 2021. This is for the provision of social and affordable housing.
• Purchasers are advised to take this increased Part V obligation into account in relation to the price paid for residential development land.
• Different Part V requirements apply to land where planning permission was granted before 3 September 2021 and to land purchased before 1 August 2021, depending on the date of purchase:

• Applicants for planning permission for smaller residential developments can continue to apply for an exemption certificate from Part V which will be available to developments of 4 houses or less.

Frequently asked questions about the changes to Part V

The Housing Agency has prepared a list of the most frequently asked questions in relation to the amendments to Part V under the Affordable Housing Act 2021. A webinar was held in October 2021, outlining the changes for the sector, and answering many of these questions.

You can also download a written version of The Housing Agency FAQs on the changes to Part V.

The revised text of Part V incorporating the amendments made under the Affordable Housing Act 2021 is available on the Law Reform Commission's website.

If you have any specific questions about Part V please contact The Housing Agency.

The Housing Agency welcomes the launch by the Government of Housing for All, a new Housing Plan for Ireland.

The plan outlines a commitment to growing housing supply in Ireland to an average of 33,000 homes per year, including a mix of social and affordable homes, cost rental and private purchase and rental. 

Commenting on the plan, John O’Connor, Chief Executive Officer of The Housing Agency, said:

“The Housing Agency welcomes the range of measures and goals announced today. Housing for All represents the Government’s commitment to sustainable and long-term planning and investment in our housing system. It is critical that we increase our housing supply to at least 33,000 homes per annum.

“The Housing Agency’s vision is to promote sustainable homes and communities. We are pleased to see that sustainability underpins the Housing for All Plan, highlighting the need for highly connected, good quality homes in sustainable communities in our cities, towns and villages. Bringing vacant properties back into use – particularly in town centres – is key to achieving this. The Housing Agency looks forward to providing central advisory services to local authorities on this initiative.

“The Housing Agency welcomes the opportunity to support the Department of Housing and the Government in managing the new Croí Cónaithe (Cities) fund which will activate the higher density developments in our cities and urban areas. To meet our housing supply requirements, we must deliver on the planning permissions for residential developments that are already in place.

“In recent years The Housing Agency’s role in housing policy, support and delivery has expanded, and now we stand ready to assist in the delivery of the key aims of Housing for All. The Plan sets out to provide 54,000 affordable homes between now and 2030. The Affordable Housing Unit, established last year within the Agency, will continue its role in supporting the delivery of Cost Rental homes, and providing its expertise in the roll out of the Affordable Purchase Schemes.”

Mr O’Connor added: “Further knowledge across our teams in areas including Mortgage to Rent, social housing projects and procurement, housing for older people and the updated ‘Part V’ legal provisions for social and affordable homes will also contribute significantly to the Agency’s role in working to achieve many of the aims set out in this strategy.”

Visit the Housing for All website

In summer 2021 The Housing Agency hosted a series of six free weekly webinars where experts delivered guidance on the governance and management of apartments and multi-unit developments.

The live lunchtime training sessions were of relevance to stakeholders involved with multi-unit developments (MUDs), and particularly to directors of owners' management companies (OMCs).

Recordings of the webinars are now available to view below and on The Housing Agency's YouTube channel.

The views expressed by the speakers in these videos are not necessarily those of The Housing Agency. All information correct as of broadcast date.

The Housing Agency is delighted to launch its Housing Education Bursary Scheme for the 2021/2022 academic year.

Recent years have seen significant developments in the areas of housing delivery and policy. Housing professionals will play a key role in shaping future developments in the sector. The Housing Agency is committed to supporting the education, training, and development of housing practitioners, as well as those interested in developing a career in housing. The Housing Education Bursary Scheme will empower housing professionals to build resilient and sustainable communities in Ireland.

The Bursary Scheme supports students and housing professionals seeking to enrol in housing studies courses offered by the Institute of Public Administration (IPA) and the Irish Council for Social Housing (ICSH), starting between September 2021 and January 2022. These include:

How to apply

The bursary awards are intended to support those who would otherwise be unable to secure funding for the full course fees from their organisation or other sources. 

Applicants can apply by downloading and completing the Bursary Application Form, and returning it as a PDF to training@housingagency.ie by the closing date/s outlined above.

This September The Housing Agency will host the final in a series of webinars on housing vulnerability. Women and Housing Vulnerability will provide an opportunity to hear about policy and practice approaches to housing vulnerability from national and international experts. This event will be of interest to policy makers, academics, housing practitioners and all those working in the housing, local government, justice and equality sectors.

This hour-long session will take place from 1-2pm on Thursday, 9 September.

Click here to register

Speakers:

Dr Paula Mayock - Associate Professor at the School of Social Work & Social Studies at Trinity College Dublin. Established Women’s Homelessness in Europe Network (WHEN)

Dr Paula Mayock is an Associate Professor at the School of Social Work and Social Policy, Trinity College Dublin. Paula’s research focuses primarily on the lives and experiences of marginalised youth and adult populations, covering areas such as homelessness, drug use and drug problems. She is the founder and co-director of the Women’s Homelessness in Europe Network (WHEN) (http://womenshomelessness.org/), which aims to promote and develop academic scholarship on gender dimensions of homelessness. Paula is co-editor of Women’s Homelessness in Europe (Palgrave Macmillan 2016) and the author of numerous articles, book chapters and research reports..

Deidre Cartwright – Development Manager, Domestic Abuse Housing Alliance UK

Deidre Cartwright is a Development Manager for Standing Together working within the Domestic Abuse Housing Alliance (DAHA). Her role focuses on improving the housing sector’s response to domestic abuse through a Whole Housing Approach, with a particular focus on the experiences of victim-survivors living in the private rented sector. Deidre also chairs the Perpetrators and Housing Working Group, which is a sub group of the National Housing and Domestic Abuse Policy and Practice Group, which brings VAWG and housing sector partners together to influence policy and develop best practice in response to domestic abuse. Deidre is also a Domestic Homicide Review Chair and Author with Standing Together, where she leads local multi-agency panels to develop learning and improve practice following the tragedy of a domestic homicide. Deidre brings 10 years’ experience in the domestic abuse sector, both as a front-line practitioner and an advisor to national and local policy makers and practitioners in developing coordinated community responses to domestic abuse.

Please note that this webinar will be recorded for future use.

Alternative registration link: Webinar Registration - Zoom

On Thursday 29 July The Housing Agency hosted the second in a series of webinars on housing vulnerability. Unhoused Trauma in Homelessness and Addiction provided an opportunity to hear about policy and practice approaches to housing vulnerability from national and international experts.

Speakers:

• Dr Briege Casey, Associate Professor at the School of Nursing, DCU and Programme Coordinator of the Certificate in Homeless Prevention and Intervention
• Gary Broderick, Director of the SAOL Project

All information correct as of broadcast date. The views expressed in the recording below do not necessarily represent the views of The Housing Agency. First broadcast: 29 July 2021. Click below to watch:

Speaker bios

Dr. Briege Casey - Associate Professor at the School of Nursing, DCU and Programme Coordinator of the Certificate in Homeless Prevention and Intervention

Dr Casey designed (in collaboration with Dublin Region Homeless Executive) the Undergraduate Certificate in Homeless Prevention and Intervention, the only university accredited programme in Europe focusing on the health and social care needs of homeless populations. She is the lead for the Community Health Academic group in the School of Nursing, Psychotherapy and Community Health, DCU and conducts a range of research initiatives in this area for example, most recently: Autism and homelessness and COVID-19 related support for people accessing homeless services. She publishes and presents widely on narrative and arts–based research including several research projects concerning the use of arts and health methodologies for improving health and social outcomes among marginalised groups. She has held several senior positions within DCU including Director of Teaching and Learning and Post Graduate Convenor roles in the School of Nursing, Psychotherapy and Community Health. She was the recipient of the DCU President’s Award for Distinctive Teaching Approaches 2013 and the winner of DCU President’s Award for Engagement 2018.  She is a reviewer for Journal of Advanced Nursing, Qualitative Health Research and Psychology and Health.  

Gary Broderick – Director, Saol Project

Mr Broderick is the Director of the SAOL Project, a service working with women who use/d drugs. Arising from his work with women who use substances, he has developed a keen interest in Trauma Informed Practice (TIP) and has implemented TIP in SAOL and has spoken at several conferences on this topic and the practical issues connected with implementing this essential philosophy. He also lectures at UCD in the Masters in Social Work, DCU’s Diploma in Homelessness Prevention and Intervention and Maynooth University’s Youth and Community Degree as well as their Social Policy degree. During his career he has attained a Diploma in Addiction Studies with Trinity College and  has completed his research masters in Eating Disorders. 

On Thursday, 24 June The Housing Agency hosted 'Key Issues in Tackling Homelessness,' the first in a series of webinars on housing vulnerability. The webinar provided an opportunity to hear about policy and practice approaches to housing vulnerability from national and international experts.

Speakers

• Dr Ligia Teixeira, CEO, Centre for Homelessness Impact UK
• Bob Jordan, National Director, Housing First Ireland

Both speakers brought a wealth of knowledge and provided an evidence-based analysis of the key issues in addressing homelessness today.

All information correct as of broadcast date. The views expressed in the recording below do not necessarily represent the views of The Housing Agency. Broadcast date: 24 June 2021. Click below to watch:

Speaker Bios

Bob Jordan is the National Director for the Housing First programme, which is part of the Government’s Rebuilding Ireland action plan for housing and homelessness. Bob was responsible for developing the National Housing First Implementation Plan 2018 - 2021 which was jointly launched by the Minister for Housing and Minister for Health in September. Bob Jordan was Special Adviser to the former Minister for Housing, Planning and Local Government in 2016 -2017, and CEO of the national housing charity Threshold from 2007 – 2016. He is a Bachelor of Science (Computer Science & Software Engineering) graduate of Trinity College Dublin and holds a Masters in International Relations from Dublin City University.

Dr Ligia Teixeira is the founding Chief Executive of the Centre for Homelessness Impact, a member of the What Works Network. She set up the Centre in 2018 and led the feasibility study which preceded its creation while at Crisis UK. Lígia is bringing ‘what works’ methodology to homelessness: the use of reliable evidence and reason to improve outcomes with existing resources. In 2019 Lígia was conferred the Award of Fellow of the Academy of Social Sciences (FAcSS) for her contribution to social science. In 2016 she was awarded a Clore Social Fellowship on Housing and Homelessness, funded by the Oak Foundation. Lígia was previously at Crisis UK, where over a period of nine years she led the organisation's evidence and data programme - growing its scale and impact so that it's now one of the largest and most influential in the UK and internationally. She joined the charity in March 2008 following stints at the Young Foundation and the Refugee Council. Lígia was awarded a PhD from the Government Department of the London School of Economics in 2007. She has also worked in research roles for Professor David Held, founder of Polity Press, for sociologist Professor Helmut Anheier, who founded and directed the LSE’s Centre for Civil Society, and for the International Labour Organisation where she covered issues including human trafficking, child labour and women’s rights.

Community-Led Housing is a ground-up approach which enables people to pool their collective resources to create homes that are accessible and affordable to all. It understands housing not as just the ‘provision of houses,’ but the empowerment of diverse, sustainable communities.

SOA Research has launched its new publication series, Roadmapping a Viable Community-Led Housing Sector for Ireland, which comprises a series of handbooks on Community-Led Housing, offering guidance in the areas of Policy, Finance, Land and Getting your Group Ready.

Supported by The Housing Agency, The Land Development Agency, Ó Cualann Cohousing Alliance and the Goethe lnstitut Irland, SOA Research initiated and coordinated a 12-month research project to roadmap a Community-Led Housing infrastructure for Ireland, which culminates in this new publication series. Project stakeholders included eight Irish CLH groups as well as public and private sector housing practitioners in Ireland and across Europe. 

Read the publication series below:

• Overview
• Policy
• Finance
• Land
• Getting Your Group Ready