Section 4 of the 2002 Act removed that category of withering permissions and restores the normal limit of duration for certain permissions.
The Act of 2002 provides that a levy will be payable in respect of any house built on foot of a permission, which would have withered but for the provisions of the 2002 Act, in the amount of 1% of the sale price if equal to or in excess of €270,000, or 0.5% of the sale price if less than that amount.
On payment of the levy, the Planning Authority will issue a receipt to the payer stating that the liability for payment of that amount has been discharged. It is very important for a prospective purchaser of a house built on foot of such a permission to ensure that the Vendor has paid the levy and has been issued with a receipt from the Planning Authority. The Act states that any provision in a contract which purports to pass the responsibility of paying the levy onto the Purchaser will be void.
The payment of the levy does not apply to the following instances:
(1) A house built on foot of a planning permission which was applied for before the 25 August 1999.
(2) Where planning permission as applied for after the 25th August 1999 but before the relevant planning Authority incorporated its housing strategy in its development plan, if the external walls have been completed before the 31st December 2002, or within two years of the date of the grant of planning permission, whichever is the later.
(3) Houses or apartments built on land which does not exceed 0.1 hectares (section 5 of the 2002 act amends section 97 of the 2000 Act by substituting 0.1 hectares for 0.2 hectares) and which is in respect of less than four units.
(4) Any house built on foot of a planning permission, application for which was lodged after the local authority incorporated its housing strategy into its development plan is not liable for a levy, but the social and affordable housing provisions will apply.
Conclusion
The 2000 Act and the 2002 Act is aiming to ensure that the housing needs of all sectors of the population are addressed through the implementation of Housing Strategies. The Department of the Environment and Local Government states that the objective of the Irish Housing Policy is “to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and, as far as possible, at the tenure of its choice”. The general trend in Irish housing policy has been a bias in favour of home ownership, and it is yet to be seen how effective the amendments in the 2002 Act will be with regard to the provision of social and affordable housing.
Zelda O’Callaghan
Commercial Construction Department
