Latest news with #ResidentialZonedLandTax
Extra.ie
27-05-2025
- Business
- Extra.ie
How many homes need to be built in Ireland each year to meet shortfall?
The State will need to build 54,000 homes a year for 25 years to meet the current housing shortfall. The Oireachtas Housing Committee will be told of the 'costly' impacts of failing to ramp up housing output to meet the level of demand. Figures for 2024 show that just 30,300 new homes were built. The Central Bank is predicting 35,000 new homes will be built this year while the ESRI are predicting 34,000. Robert Kelly, director of economics and statistics at the Central Bank, will tell the committee that a 'structural shortfall in housing stock' has built up due to over a decade of undersupply. The State will need to build 54,000 homes a year for 25 years to meet the current housing shortfall. Pic: Getty Images Mr Kelly will say that failing to address the housing shortfall will have multiple knock-on effects. 'Beyond the high social cost, inadequate housing supply will lead to rising rents and house prices, ' he will tell the committee. 'This, in turn, will drive up living costs, reduce disposable incomes, and intensify wage pressures, undermining our competitiveness as a small open economy,' Mr Kelly will point to issues with critical infrastructure as barriers to ramping up housing development. 'Delivering homes at scale requires investment in essential infrastructure like water, energy, and transport networks. Without these, development cannot proceed,' he will say. The Central Bank of Ireland. Pic: 4H4 PH/Shutterstock An analysis by the Central Bank shows that 'delays in infrastructure planning or execution lead to long wait times, causing a permanent reduction in private sector participation and resulting in poor value for money'. In relation to planning, Mr Kelly will say that decision times have 'significantly decreased' and that early results from the Large Scale Residential Development model 'are promising' with a 50% increase in usable permissions. The committee will also be joined by representatives from the Economic and Social Research Institute (ESRI). Associate research professor at the ESRI, Dr Conor O'Toole, will tell the committee that the cost and availability of land, labour costs, materials and input costs, the cost of financing and price developments are the central barriers to development. Figures for 2024 show that just 30,300 new homes were built. Pic: Getty Images In particular, Dr O'Toole will point to a need for 'supply-side reforms that can support housing production' such as reform of the land market. Dr O'Toole will suggest greater use of activation measures to make more land available for development, with the Residential Zoned Land Tax (RZLT) cited as a mechanism to achieve this quickly. The RZLT is a tax, charged at 3% of the market rate of the site, that is zoned for residential use but not being developed for housing. The ESRI will also point to infrastructural issues such as the 'provision of services and utilities such as water, wastewater and electricity connections' as being at the fore of inhibiting housing development. Dr O'Toole will say that financing for home building will require financing from both the State and the private sector to deliver the required mix of housing tenure. 'This will require private financing from bank lending, domestic and international equity and other sources such as European funds where available,' he will tell politicians. Dr O'Toole will tell the committee that productivity in the small domestic construction sector, compared to international companies, is inhibiting greater housing output. 'This lack of productivity is likely to be inhibiting activity in the sector. Productivity could be enhanced through economies of scale with larger firms. 'The second productivity-enhancing step is a movement towards modern methods of construction (pre-fabrication, etc) which can help standardise production, lower costs and increase timeframes,' he will remark.
Agriland
23-05-2025
- Business
- Agriland
Revenue extends deadline to file for RZLT
Revenue has announced that the deadline for submission of annual Residential Zoned Land Tax (RZLT) returns for 2025 has been extended to Friday, May 30, 2025. RZLT is a self-assessed annual tax based on the valuation of a relevant site. It is calculated at 3% of the market value of the relevant site. It aims to activate serviced, zoned land for residential or mixed use to boost housing supply and regenerate vacant, idle urban land. Some farmers and landowners have applied to have their land rezoned. Revenue said it has seen positive levels of engagement from site owners in respect of their RZLT obligations to date, with liabilities of approximately €12 million having been paid. Revenue added that it is, however, aware that some site owners have commenced the process to register for RZLT, but have not yet submitted a return. The extension is aimed at supporting taxpayers by giving them additional time to complete this process. RZLT RZLT aims to incentivise landowners to activate existing planning permissions for housing on land identified on maps published by Local Authorities as meeting this criteria, or to engage with planning authorities and seek planning permission in respect of such land. The tax applies from 2025 onwards, at a rate equal to 3% of the market value of the relevant site. Site owners with land which has been included on the Local Authority 2025 Revised Maps are advised to register for RZLT and submit their return online. There is a 24-hour turnaround time between completing the RZLT registration and issuance of the Site ID required to complete the RZLT return. As such, early engagement with the registration process is encouraged, according to Revenue. Taxpayers are advised to ensure that they have as much information to hand as possible when completing their registration, to ensure that their identity can be verified. Revenue has said that if it is not possible to verify the taxpayer's identity online, password and registration details will be issued by standard post. Taxpayers using an agent or advisor to assist them in filing their RZLT return should note that their agent or advisor must be linked to their Revenue record through the Agent Link Manager Application process. As part of this process, the agent or advisor should initiate the link request, and the taxpayer will then receive a prompt, through their ROS inbox notification or MyEnquiries, to review and accept the request. As a self-assessed tax, Revenue stated that site owners are responsible for determining whether they have a liability to RZLT, and, if so, for satisfying their pay and file obligations. Surcharges will be applied where a site owner, who is required to submit an RZLT return, fails to do so. These surcharges range from 10% to 30%.
Irish Independent
13-05-2025
- Business
- Irish Independent
‘Developers standing back' as land tax stalls interest in zoned farmland
Major home builder Glenveagh has confirmed the tax is impacting how it manages land and decides which sites to buy, hold or sell. It comes as the Government ramps up pressure on local authorities to zone more land for housing, with Housing Minister James Browne set to write to county councils this week to get the process moving. IFA farm business chair Bill O'Keeffe said developers, approved housing bodies (AHBs) and financial lenders are all standing back from purchasing zoned land in many cases due to the tax liability and wider market challenges. 'Affected farmers live in fear of the tax implications of RZLT [Residential Zoned Land Tax], and its introduction has not increased interest from potential buyers,' he said. Developers, he added, are standing back from purchasing zoned land in many cases, until the many other obstacles that are restricting housing development – finance, pre-planning investigations, labour and materials – are in place. The stated aim of RZLT was to encourage housing development, but it's doing the exact opposite 'There are several hoops to jump through to avail of the one-year exemption and we're calling for all actively farmed land to be permanently excluded,' he said. He criticised the current system, which requires affected farmers to make a submission to de-zone their land and then make a return to Revenue before May 23 to qualify for the 2025 exemption. 'The stated aim of RZLT was to encourage housing development, but it's doing the exact opposite,' he said. Meanwhile, top home builder Glenveagh said the RZLT is now a 'factor' in how it assesses potential land deals. "From our perspective, the RZLT is a factor that we need to consider when assessing potential land acquisitions and, indeed, in determining the need for site sales where other players in the industry may be able to develop a particular site more quickly than us, for example." However, it also said the RZLT is supporting in keeping residentially zoned land flowing through the system and in the hands of people who can develop it as efficiently as possible. The pressure on landowners comes as RTÉ reported at the weekend that the Government will instruct county councils to reopen their development plans and rezone more land for housing under a Section 28 Direction. The move is aimed at speeding up the delivery of over 300,000 homes by 2030. However, as the planning and zoning landscape shifts, Glenveagh is continuing its push to partner with farmers to identify new housing sites. The developer's land partnerships initiative, launched in 2022, offers landowners the chance to engage in joint deals where Glenveagh takes on the cost and risk of achieving planning permission. In return, farmers retain ownership of their land until permission is secured and typically receive a higher sale price. 'We remain open to opportunities for similar partnerships with landowners,' Glenveagh said. 'Based on our experience to date, this has been a very constructive way to identify sites close to the necessary infrastructure and amenities.' It says several sites secured through this model are now at various stages of planning and, if permission is granted, could support the delivery of a significant number of homes. The company said its experience has shown that partnerships like these can help unlock value in the land and streamline the development process in regions where demand for housing is high.
Agriland
06-05-2025
- Business
- Agriland
Farmers ‘live in fear of the tax implications of RZLT'
Farmers are being reminded that the deadline for Residential Zoned Land Tax (RZLT) returns to Revenue is fast approaching. The Irish Farmers' Association (IFA) Farm Business Committee chair Bill O'Keeffe said farmers who have made a submission to dezone their lands must now make a return to Revenue on or before Friday, May 23 to avail of an exemption from RZLT in 2025. This can be done by any individual by submitting a return on the RZLT portal through the Revenue online resources: myAccount or Revenue Online Service (ROS). The advice from the IFA for those who are not familiar with these online portals to engage professional accountancy services to make this return. RZLT All farmers who made submissions to local authorities in the February-March window should have received an acknowledgement of this by April 30. This acknowledgement must be included as part of the RZLT return to Revenue where a farmer is seeking an exemption from the 3% RZLT tax in 2025. 'IFA lobbied for a permanent exemption for actively farmed land throughout 2024. The exemption announced in the Budget 25 speech is unsatisfactory as it only covers this year,' O'Keeffe said. 'The process places undue obligations on many hundreds of affected farmers who may have lands zoned without their knowledge. 'They are now under the scope of this unfair taxation and there were several hoops to jump through to avail of this one-year tax exemption,' he said. Exemption The IFA Farm Business chair said that a one-year exemption from RZLT is not a solution. 'All actively farmed lands must be removed from the scope of RZLT permanently. 'The leaders of the three largest political parties – Fianna Fáil, Fine Gael and Sinn Féin – gave a commitment to the IFA in advance of last year's general election that they would remove actively farmed land from RZLT, but we have yet to see delivery on this commitment by the current government,' O'Keeffe said. The IFA committee chair called on the Minister for Finance, Pascal Donohoe and the Minister for Housing, James Browne to recognise that the current approach is not the correct instrument to encourage greater delivery of housing. He said that the stated aim of RZLT was to encourage housing development, but the RZLT is doing the exact opposite. 'Affected farmers live in fear of the tax implications of RZLT and its introduction has not increased interest from potential buyers to purchasing zoned land in many cases. 'Housing developers, AHBs (approved housing bodies) and financial lenders all recognise the RZLT liability associated with purchasing zoned land. 'They are standing back from purchasing zoned land in many cases, until the many other obstacles that are restricting housing development – finance, pre-planning investigations, labour and materials – are in place,' he said. O'Keeffe said that the IFA and farmers understand the need for more houses, but RZLT is not the instrument that will solve the current deficit. 'There are many other barriers to the supply of new housing that the government needs to address. 'IFA will continue this campaign to have all farmland permanently excluded from the scope of RZLT,' he added.
Agriland
23-04-2025
- Business
- Agriland
RZLT: Over 200 submissions received nationally for rezoning land
Latest figures from local authorities indicate that in the region of 241 submissions have been made for rezoning land nationwide under the final 2025 map for Residential Zoned Land Tax (RZLT). Figures obtained by Agriland found there were approximately 90 submissions in total in Munster, 70 in Leinster, around 51 in Connacht, and around 30 in Ulster (excluding Co. Cavan, as figures are being retrieved). RZLT is a self-assessed annual tax, calculated at 3% of the market value of land within the charge to the tax. It aims to activate serviced, zoned land for residential or mixed use to boost housing supply and regenerate vacant, idle urban land. The 2025 RZLT maps were published by local authorities on January 31, 2025. Landowners had until March 31 to apply to their local county council to rezone their land if they wished for an exemption. Co. Galway appears to have the most amount of submissions nationwide for rezoning of land on the 2025 RZLT map, according to the figures obtained by Agriland. There were 38 submissions received in total by Galway County Council, one of which was withdrawn. There have also been five submissions on the annual draft map for 2026, two of which have been withdrawn. Co. Clare had the second highest number of submissions, at a total of 25. Co. Donegal similarly had about 24 submissions which relate to 2025 maps. There was another 23 submissions to Tipperary County Council; a total of 20 valid requests in Co. Kerry; and a further 12 requests in Co. Cork. All of these applications will be acknowledged by the local authorities by April 30. Landowners will then be notified of the decision to proceed or nor to proceed with a process to amend the land zoning by June 30, 2025. Draft maps for 2026 RZLT were published by local authorities on February 1, 2025. Submissions for rezoning on this map has also since closed. The final map for 2026 will be published on January 31, 2026.
