Part V Changes – Affordable Housing Act 2021

In accordance with the Affordable Housing Act 2021, Part V of the Planning and Development Acts 2000 to 2020 has been amended.

The recent Affordable Housing Act 2021 has led to several changes of the Planning and Development Acts 2000 to 2020. These are as follows.


Part V Changes

20% Part V Requirement

This will primarily apply to land purchased on or after 1 August 2021. All new planning permissions for housing development on that land will have a 20% Part V requirement.

10% Part V Requirement

This applies to land with existing planning permission or land that has been purchased between 1 September 2015 and 31 July 2021 and planning permission is granted before 31st July 2026.


FHP - Part V Changes from Affordable Housing Bill



Housing Strategies
  • Housing strategies within local authority development plans must include an estimate of how much social, affordable purchase and cost rental housing is required in the area.
  • Housing strategies must specify a percentage (which does not exceed 20%) of land to be reserved for the delivery of social and (if applicable) affordable, and cost rental housing under Part V.
  • If a housing strategy is already in place, the local authority’s chief executive must estimate the affordable purchase and cost rental requirements for deemed inclusion in it.


Part V Changes - Timeline



Other Changes
  • There will be a Part V requirement on any land granted planning permission for the development of housing, irrespective of zoning.
  • The legislation has been updated to bring clarity to the availability of arbitration at any stage in the Part V negotiations.
  • The ‘market value’ of land for the purpose of Part V is now defined as the open market value on the date of the grant of planning permission.
  • An applicant for planning permission for developments of 4 houses or fewer can apply for an exemption certificate from Part V.


More information about these changes can be found here.


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