Developers warned to build or ‘pay up’

Developers ‘sitting’ on city land that is suitable for housing will be hit with hefty fines to encourage them to build.

The local authority is to be handed new powers by Government to entice developers to start building houses again.

The measure is one part of the Government’s plans to tackle the country’s housing shortage, and homelessness.

It is part of the Urban Regeneration and Housing Bill 2015, which will allow Galway City Council to identify sites that could be used for housing, and with planning permission.

Galway’s planners could then slap a levy on builders and landowners who are waiting, some of them for land prices to rise, before they begin construction of homes again.

Minister of State for Housing, Paudie Coffey, said his new legislation would tackle the problem of vacant and idle land and improve housing supply in Galway.

He said the new legislation is two-pronged. First it introduces a new vacant site levy on housing or regeneration lands suitable for housing but not coming forward for development.

And it also brings into law new measures to “streamline housing delivery” including revisions to social housing and development contributions requirements.

He said it was now up to Galway City Council, “to examine their development plans from now into 2016 and identify sites that are ready to go but are not advancing and, where there are critical housing shortages, to prepare vacant sites registers and contact owners.”

The junior minister said that landowners would have time to discuss the issues with the local authority but he said the Government hoped that the threat of a financial levy “will start people thinking about getting strategically located but idle sites into more beneficial use”.

He said the new legislation will enable the City Council to retrospectively implement reductions of development charges in respect of existing but un-commenced planning permissions – improving the economics of new housing development and easing the housing shortage.

“The aim and priority of the suite of measures is to kick-start construction activity and secure social housing units on-site. To that end, the practice of developers making cash payments in lieu of social housing is discontinued under the new legislation,” added Mr Coffey.

Elsewhere, Fine Gael TD, John O’Mahony, said some 87 new homes in Galway for elderly people and those with intellectual or physical disability will be provided by Government. It is part of a nationwide housing plan.

“This is fantastic news. It will directly benefit these individuals and their families and will greatly help to reduce the pressure on Galway City and County Councils.

Furthermore it will provide us with a legacy of improved housing stock for those who are unable to provide for themselves. It is extremely welcome that we will have these new dedicated social housing units to provide these supports to those who find themselves in need of housing support,” said Deputy O’Mahony.

Meanwhile, Galway West TD, Derek Nolan said the provision of funding to provide student-specific accommodation in Galway must be a priority.

“Galway is suffering from a real shortage in private rented accommodation. This shortage is made worse by a lack of suitable accommodation for third level students in the city. As a result we are seeing increasing rents and a lowering of standards across the sector.

“At present there are almost 25,000 third-level students in Galway and this number looks set to rise in the coming years. While a certain number of these students will live at home or with other family members, the majority will require student specific accommodation for the duration of their three or four year stay in Galway. It is crucial that these needs are met,” said the Labour Party TD.