Draft Part V Guidelines for Local Authorities

The Department of Housing, Planning, Community and Local Government has issued draft Guidelines for local authorities in relation to the recently amended Part V (Social Housing) provisions.

Our recent newsletters have reported on significant changes to planning legislation and, in particular, in relation to housing provision – including changes to the Part V requirements for developers. New residential developments of 10 units or more generally have to provide 10% of the houses (or the site area) for social housing under Part V. These measures must be agreed in writing between the developer and the planning authority prior to the lodgement of a commencement notice by the developer.

The draft Guidelines deal with a number of detailed issues in relation to the implementation by local authorities of Part V. Whilst they are primarily aimed at local authorities and, in particular, to housing and planning staff, the Guidelines will be of great interest to planning consultants and developers also.

The draft Guidelines cover all stages of the Part V process, from the initial pre-application consultation, both with planning and housing officials, through to the signing of the detailed Part V agreement, including detailed costings and compensation. The emphasis is on early consultation to ensure that the housing needs of the area can be best matched with the detailed Part V proposals in any new development. Indeed, there is a requirement to include the developer’s proposal with any planning application, which should contain the number, type and location of units (or land, if preferred) and indicative costs.

A significant portion of the draft Guidelines deals with the matter of costs and compensation. They provide examples of how costs may be apportioned and sets out the definition of the “net monetary value” for the Part V agreement. In this regard, the “net monetary value” is the market value of the land (with planning permission) less the existing use value on the date of planning permission. This forms the basis of the public gain and effectively gives the local authority a discount on the land value element of the overall cost of the social housing. In general terms, the net monetary value to the local authority should be 10% of the increase in value of the land with the benefit of permission.

The draft Guidelines are available for public comment until 16th September 2016.

The draft Guidelines can be found on the Department’s website at:



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