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 Post subject: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 11:10 am 
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In the current edition of the construction industry magazine PassiveHousePlus there is an excellent article by Mel Reynolds outlining the deliberate policies that have been introduced by the Fine Gael government to encourage hoarding of land and ensure that only a paltry supply of new housing would be made available. Some of us here have been pointing these policies out for years but it is good to see that they are finally getting a more widespread airing.

I would urge everyone with an interest in the Irish and UK property sector to subscribe to this magazine.

Capital Gains Tax Exemption 2012.
Section 604A of the 2012 was brought in to encourage the sale of sites by NAMA at fire-sale prices and the hoarding of those sites for 7 years in order to avail of a zero rated Capital Gains Tax.
Only 8800 new units have been constructed since then.

Vacant Site Levy Tax 2016
Posponed until 2019, and when they are finally introduced they will be easy to minimise by structuring the funding appropriately. Ideally designed to allow land hoarders to benefit fully from the 2012 CGT exemption.

Capital Gains Exemption 2016
Section 739k of the 2016 Planning Act is a further five year CGT exemption to encourage the hoarding and non use of development land. The 5 year period starts from the date of purchase and is designed to prevent a glut of property from undermining values at the end of the 2012-2019 scheme. Revenue commented that this would act as a "lock on the residential market".

Planning and Development (Amendment) (No.2) Bill 2017
The 'don't use it, don't lose it' bill. It allows 10-12 year old planning permissions to be extended further with no pressure on the land owner or developer to actually build.

That's a rough summary of the article. Worth reading the original.

The only sector of society that benefit from these policies are land speculators and landlords. Tenants and young couples seeking to enter the market are being completely screwed, and because the policies are distorting the market to such a massive degree ultimately they are unsustainable and this bubble will burst.


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 1:02 pm 
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Good post

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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 1:25 pm 
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Do you have a link to the original article ?


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 3:08 pm 
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mr_anderson wrote:
Do you have a link to the original article ?
No, subscription only. Available in all good bookshops.


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 6:27 pm 
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Coles2 wrote:
mr_anderson wrote:
Do you have a link to the original article ?
No, subscription only. Available in all good bookshops.



I only frequent bad ones. :(


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 9:05 pm 
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Coles2 wrote:
In the current edition of the construction industry magazine PassiveHousePlus there is an excellent article by Mel Reynolds "........

Planning and Development (Amendment) (No.2) Bill 2017
The 'don't use it, don't lose it' bill. It allows 10-12 year old planning permissions to be extended further with no pressure on the land owner or developer to actually build.

That's a rough summary of the article. Worth reading the original.

The only sector of society that benefit from these policies are land speculators and landlords. Tenants and young couples seeking to enter the market are being completely screwed, and because the policies are distorting the market to such a massive degree ultimately they are unsustainable and this bubble will burst.


An article from an architect is no different than an article from an EA. They are both vested interests.

I have some direct experience with the planning laws having brought a number of development sites in the last few months. Planning permission lasts five years unless the previous owner applies for an extension which if granted will extend the planning for a further 5 years.

Re-applying for planning permission is no joke given the fees I am paying to architects.


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 10:22 pm 
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Joined: Dec 2, 2013
Posts: 2737
Luan wrote:
Coles2 wrote:
In the current edition of the construction industry magazine PassiveHousePlus there is an excellent article by Mel Reynolds "........

Planning and Development (Amendment) (No.2) Bill 2017
The 'don't use it, don't lose it' bill. It allows 10-12 year old planning permissions to be extended further with no pressure on the land owner or developer to actually build.

That's a rough summary of the article. Worth reading the original.

The only sector of society that benefit from these policies are land speculators and landlords. Tenants and young couples seeking to enter the market are being completely screwed, and because the policies are distorting the market to such a massive degree ultimately they are unsustainable and this bubble will burst.


An article from an architect is no different than an article from an EA. They are both vested interests.

I have some direct experience with the planning laws having brought a number of development sites in the last few months. Planning permission lasts five years unless the previous owner applies for an extension which if granted will extend the planning for a further 5 years.

Re-applying for planning permission is no joke given the fees I am paying to architects.


Jesus Christ
I saw this good post this morning and I thought to myself 'I bet that FG vested interest shill Luan is going to find something to post'. Do you never get embarrassed by yourself ?


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Mon Aug 21, 2017 10:28 pm 
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Joined: Dec 2, 2013
Posts: 2737
Coles2 wrote:
In the current edition of the construction industry magazine PassiveHousePlus there is an excellent article by Mel Reynolds outlining the deliberate policies that have been introduced by the Fine Gael government to encourage hoarding of land and ensure that only a paltry supply of new housing would be made available. Some of us here have been pointing these policies out for years but it is good to see that they are finally getting a more widespread airing.

I would urge everyone with an interest in the Irish and UK property sector to subscribe to this magazine.

Capital Gains Tax Exemption 2012.
Section 604A of the 2012 was brought in to encourage the sale of sites by NAMA at fire-sale prices and the hoarding of those sites for 7 years in order to avail of a zero rated Capital Gains Tax.
Only 8800 new units have been constructed since then.

Vacant Site Levy Tax 2016
Posponed until 2019, and when they are finally introduced they will be easy to minimise by structuring the funding appropriately. Ideally designed to allow land hoarders to benefit fully from the 2012 CGT exemption.

Capital Gains Exemption 2016
Section 739k of the 2016 Planning Act is a further five year CGT exemption to encourage the hoarding and non use of development land. The 5 year period starts from the date of purchase and is designed to prevent a glut of property from undermining values at the end of the 2012-2019 scheme. Revenue commented that this would act as a "lock on the residential market".

Planning and Development (Amendment) (No.2) Bill 2017
The 'don't use it, don't lose it' bill. It allows 10-12 year old planning permissions to be extended further with no pressure on the land owner or developer to actually build.

That's a rough summary of the article. Worth reading the original.

The only sector of society that benefit from these policies are land speculators and landlords. Tenants and young couples seeking to enter the market are being completely screwed, and because the policies are distorting the market to such a massive degree ultimately they are unsustainable and this bubble will burst.


+1 You could add to this the government driven Nama policy of selling in bulk to international property fund landlords and the governments own REIT legislation. Both of which encourage concentration of property ownership.


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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Tue Aug 22, 2017 8:25 am 
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Joined: Sep 13, 2012
Posts: 5469
Surely REITs dilute property ownership? As an asset class they are popular with pension funds.

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 Post subject: Re: 'Help to Hoard' - How Government made the Housing Crisis
PostPosted: Tue Aug 22, 2017 12:51 pm 
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Joined: Apr 9, 2014
Posts: 2126
GameBlame wrote:
Luan wrote:
Coles2 wrote:
In the current edition of the construction industry magazine PassiveHousePlus there is an excellent article by Mel Reynolds "........

Planning and Development (Amendment) (No.2) Bill 2017
The 'don't use it, don't lose it' bill. It allows 10-12 year old planning permissions to be extended further with no pressure on the land owner or developer to actually build.

That's a rough summary of the article. Worth reading the original.

The only sector of society that benefit from these policies are land speculators and landlords. Tenants and young couples seeking to enter the market are being completely screwed, and because the policies are distorting the market to such a massive degree ultimately they are unsustainable and this bubble will burst.


An article from an architect is no different than an article from an EA. They are both vested interests.

I have some direct experience with the planning laws having brought a number of development sites in the last few months. Planning permission lasts five years unless the previous owner applies for an extension which if granted will extend the planning for a further 5 years.

Re-applying for planning permission is no joke given the fees I am paying to architects.


Jesus Christ
I saw this good post this morning and I thought to myself 'I bet that FG vested interest shill Luan is going to find something to post'. Do you never get embarrassed by yourself ?

:roll:

Mel Renyolds is an architect - a profession that is one of the prime beneficiaries of an increase in building volumes. As such he is a vested interest.

For the avoidance of doubt, I have never voted for FG :) Also I am in no way embassed by my postings on the pin.


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