Part 6 of the Affordable Housing Act 2021 will introduce important changes to Part V of the Planning and Development Act 2000, which is the mechanism which allows local authorities to obtain a certain percentage of land zoned for housing at existing use value as opposed to development value.

These changes are as follows:

  • The Part V contribution will now apply to cost-rental as well as social and affordable housing.
  • The percentage of a new development to be transferred to the planning authority in satisfaction of Part V has been increased from 10% to 20%. It remains possible to satisfy this in ways other than a transfer of the land the subject of the permission (e.g. transfer for other land or the grant of leases).
  • Where the Part V requirement is being satisfied by virtue of a lease arrangement, that can now be by a lease to persons nominated by the authority (e.g. Approved Housing Bodies).
  • The new 20% requirement will apply to all planning permissions granted after 1 August 2021.
  • Transitional provision have been included where the permission is granted during the period beginning on 1 August 2021 and ending on 31 July 2026 but where the land to which the application  for  permission  relates  was  purchased  by  the applicant, or the person on whose behalf the  application  is made,  during  the  period  beginning  on  1  September  2015 and ending on 31 July 2021.  In such circumstances, the Part V requirement will continue to be 10%.
  • The size of development at which one can seek exemption from Part V has been reduced to fewer than 5 dwellings (where previously it was fewer than 10 dwellings).

For further information on this topic, please contact Jason Milne, Partner,  Aoife Smyth, Knowledge Lawyer or any member of A&L Goodbody’s Environmental and Planning or Real Estate teams.