The state’s new tax rules designed to clampdown on land speculation will not reduce house prices and cause a potential “hiatus in the land market”, property lobbyists have said.
Irish Institutional Property has also told the government that it is imperative that the new tax is phased in order to ensure many developments don’t become unviable. Under the government’s Housing for All plan, it has been proposed that the state will create a Land Value Sharing measure to take a 30 per cent cut of the uplift in value created on land zoned for residential use. Currently in Ireland, if unzoned land is purchased and then rezoned for housing, the uplift in value is completely retained by the landowner.
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