Cllr Niall Mc Nelis has called on the government parties to take on board the latest bill from the Labour Party that would implement a key recommendation of the 1973 Kenny report to tackle speculation and hoarding.
The land bill will give the power to local authorities to compulsory purchase development land at its existing use value plus 25 per cent, rather than at market value.
Cllr Mc Nelis said: “We have a housing emergency and we need more affordable housing. This Labour bill will put it up to the Government and the Minister for Housing about how serious they really are about tackling the housing crisis.
“The Minister has talked a lot about affordable housing and we know that land costs makes up so much of the price of a home so here is a chance for him to finally act and implement the Kenny report 50 years on.
“This land bill from Labour wants to eliminate the ability of development property speculators to pocket enormous profits.
“We estimate that over time this bill if implemented would knock tens of thousands off the price of a new build house and will be a big help to people trying to save for a home of their own.
“It will also eliminate speculation on development land and go a long way to getting more supply on stream by hitting land hoarders and speculators where it hurts.”
Other measures must be implemented according to Cllr Mc Nelis.
“This land bill is not a silver bullet, though, and we also need the Government to adopt other measures including a ‘use it or lose it’ provision on planning permissions and ensure the derelict sites levy is enforced,” he added.
“The Government’s own think tank, the National Economic and Social Council recently concluded that the core principles of the Kenny Report remain as relevant today as they were in 1973. Blockages on the supply side include the slow release of land for development. With excess demand, property developers can control prices and secure super-normal profits in a cartel-type situation.
“This bill would be a big step in the right direction, send a clear signal to land hoarders and speculators that they need to move now to build housing on the sites which they have acquired, on both greenfield and brownfield sites.
He concluded: “By giving these powers to local councils, it will make a massive difference in reducing the land cost of newly built units.”
