One of the country’s largest home builders wants to lure farmers into partnerships that could potentially net them higher-than-normal land prices.
In some cases Glenveagh Properties is willing to pay substantial non-refundable deposits to secure a farmer’s support for a project.
They have launched a campaign aimed at overcoming what they see as a “huge drop” in the amount of building land coming onto the market.
The deals will pay farmers an upfront payment on the condition that the developer can apply for a building permit. Glenveagh then bears all the costs associated with an extensive application to a local authority.
If a development permit is granted, the final selling price will be higher than the farmer would have expected if he had sold at the beginning of the process.
“If the farmer were to sell the land today with existing problems (planning or lack of services), it would be sold for x.
“On the other hand, if they travel with us and we add value through the planning process or the services, they will be paid a different amount if that value is added to the land,” Glenveagh Investment Director Eoin Hughes told The Irish Independent.
It comes as local authorities are set to release maps showing which landowners will face a 3-part property tax due to be introduced next year.
The tax will be based on the market value of the land, and the Housing Department has said there will be 20,000 to 22,000 acres of land in the region covered by the tax by the end of 2022, with about 90 percent of that understood to be currently in agricultural use.
https://www.independent.ie/business/farming/farm-property/developers-lure-farmers-with-special-land-deal-to-build-homes-42074583.html Developers lure farmers with special land deals to build houses