Planning and Development Act 2024

Agreement relating to transfers to planning authority

247. (1) Subject to subsections (2), (10) and (12), an agreement under this Chapter shall provide for the transfer to the planning authority, with good marketable title, of the ownership of 20 per cent of the land that is subject to the application for permission for the provision of housing referred to in paragraphs (i), (ii) and (iii) of subsection (10) of section 242 .

(2) Instead of the transfer of land referred to in subsection (1), an agreement under this Chapter may provide for—

(a) the building and transfer, on completion, to the ownership of the planning authority, or to the ownership of persons nominated by the authority, in accordance with this Part, of such number and description of houses on the land which is subject to the application for permission as may be specified in the agreement,

(b) the transfer to the ownership of the planning authority, or to the ownership of persons nominated by the authority, in accordance with this Part, of houses of such number and description as may be specified in the agreement on any other land within the functional area of the planning authority,

(c) the grant to the planning authority, or persons nominated by the authority, in accordance with this Part, of a lease under the Housing Acts 1966 to 2021 of houses of such number and description as may be specified in the agreement on the land which is subject to the application for permission, or on any other land within the functional area of the planning authority,

(d) a combination of a transfer of the ownership of less than 20 per cent of the land referred to in subsection (1) and the doing of one or more of the things referred to in paragraphs (a) to (c), or

(e) any combination of the matters referred to in paragraphs (a) to (c),

provided that the agreement provides for the sum of the following amounting to no less than the net monetary value that the planning authority would receive if the agreement solely provided for a transfer of land under subsection (1):

(i) land or houses transferred to the planning authority under the agreement;

(ii) any reduction in rent payable over the term of a lease referred to in paragraph (c) (excluding any reduction for maintenance, management and void periods specified in such lease).

(3) Where land is transferred to a planning authority under subsection (1), the planning authority shall use at least half of that land for the provision of housing for the purposes of the provision of social housing support within the meaning of the Housing (Miscellaneous Provisions) Act 2009 .

(4) Where land or houses are transferred to a planning authority under subsection (2), or where there is a reduction in rent payable over the term of a lease referred to in paragraph (c) of subsection (2) (excluding any reduction for maintenance, management and void periods specified in such lease), the planning authority shall use at least half of the net monetary value that the planning authority would receive if the agreement solely provided for a transfer of land in accordance with subsection (1) for the provision of social housing support within the meaning of the Housing (Miscellaneous Provisions) Act 2009 .

(5) In considering whether to enter into an agreement under subsection (2), a planning authority shall consider each of the following:

(a) whether such an agreement will contribute effectively and efficiently to the achievement of the objectives of the housing development strategy;

(b) whether such an agreement will constitute the best use of the resources available to it to ensure an adequate supply of housing;

(c) any financial implications of the agreement for its functions;

(d) the need to counteract and prevent undue segregation in housing between persons of different social backgrounds in the area of the local authority;

(e) whether such an agreement is in accordance with the provisions of the development plan;

(f) the period within which housing referred to in paragraphs (i) to (iii) of subsection (10) of section 242 is likely to be provided as a consequence of the agreement.

(6) Where houses are to be transferred to the planning authority, or to persons nominated by the authority, pursuant to an agreement under subsection (2), the price of such houses shall be determined on the basis of—

(a) the sum payable by the planning authority under section 250 for the land on which a house is built (including external parts for use exclusively in connection with the house), and

(b) the costs, including normal construction and development costs and profit on those costs, calculated at open market rates that would have been incurred by the planning authority had it retained an independent builder to undertake the works, including the appropriate share of any common development works, as agreed between the authority and the developer.

(7) Where an agreement under this Chapter provides for the transfer of land or houses or both, such land and such houses shall, whether in one or more parts, be identified in the agreement.

(8) In so far as it is known to the planning authority at the time of the agreement, the planning authority shall indicate to the applicant for permission its proposed provision of housing on the land to be transferred, or to be the subject of a lease, in accordance with subsection (1) or (2), and such indication shall include a description of the proposed houses.

(9) Nothing in this section shall be construed as requiring an applicant for permission or any other person (other than the planning authority) to enter into an agreement under subsection (2) instead of an agreement under subsection (1).

(10) In considering whether to enter into an agreement under subsection (1) or (2), the planning authority shall consider—

(a) the proper planning and sustainable development of the area to which the application relates,

(b) the housing development strategy and the specific objectives of the development plan relating to the implementation of the strategy,

(c) the need to ensure the overall coherence of the development to which the application relates, where appropriate, and

(d) the views of the applicant in relation to the impact of the agreement on the development.

(11) Government guidelines on public procurement shall not apply to an agreement made under subsection (1) or (2) except in the case of an agreement that is subject to the requirements of Council Directive 2014/24/EU of the European Parliament and of the Council of 26 February 201419 on public procurement and repealing Directive 2004/18/EC and any directive amending or replacing the first mentioned directive.

(12) Where—

(a) a permission to which this Chapter applies is granted before 1 August 2021, or

(b) a permission to which this Chapter applies is granted during the period beginning on 1 August 2021 and ending on 31 July 2026 and the land to which the application for permission relates was purchased by the applicant, or the person on whose behalf the application is made, pursuant to a legally enforceable agreement entered into, or in exercise of an option in writing, to purchase the land, during the period beginning on 1 September 2015 and ending on 31 July 2021,

then the references to “20 per cent of the land” in subsection (1) and paragraph (d) of subsection (2) shall be read as “10 per cent of the land”, the reference in subsection (3) to “at least half of that land” shall be read as “all of that land” and the reference in subsection (4) to “at least half of the net monetary value” shall be read as “the entire net monetary value”.

19 OJ No. L94, 28.3.2014, p. 65