Tuesday, 30 January 2018
VACANT SITE LEVY SUMMARY & IMPACT ON AFFECTED PROPERTY OWNERS
The
Vacant Site Levy which was established under the Urban Regeneration &
Housing Act 2015 is likely to have ramifications for all owners of Vacant sites
with the first year of billing due in 2019 for the preceding year at a rate of
3% of the market value in Year 1 rising to 7% after that (as outlined in Budget
2018).
There
is a perception that this will largely only impact the owners of sites in
Dublin or other large cities but this is not the case and as soon as June of
this year owners will start getting notifications in the post that their
property has been entered on the list.
A
practical example of this is that we recently sold some residentially zoned
lands in a Provincial Town which is unlikely to be developed in the short
term. If you apply the 3% levy to the
current value the liability will be €13,000 in Year 1 and €30,000 in Year 2 so
this matter is rapidly going to become a serious issue for landowners.
There
is still some uncertainty around the exact working and implantation of this
levy but we have set out below some initial questions with answers in summary
form. For anyone looking to read the
relevant Act it is available on the link below http://www.irishstatutebook.ie/eli/2015/act/33/enacted/en/pdf
How a site is
deemed vacant:
Vacant sites shall be entered on the register where they
have been vacant for a minimum period of 12 months from January 2017 to January
2018, have an area in excess of 0.05 hectares, are zoned for either ‘Residential’
or ‘Regeneration’ purposes and are consistent with the criteria as set out in
the Act.
Details of Vacant
Site Register and when it will be available for inspection:
It is a requirement of the Act that properties are entered
on the register including details of location, site area, ownership and market
value which will be available for public inspection. From the middle of 2018
sites should start to appear on Local Authorities listings for Public review.
Timescales:
Planning Authorities will notify property owners before 1
June 2018 that their sites are being placed on the register. Thereafter the
owner of the vacant site will be liable for payment of the levy in respect of
each year until the site is no longer vacant.
Objection to
entry on Register:
When notified by the planning authority of its intention to
include a site on the register, a property owner may object to the proposed
inclusion and can make a submission to the planning authority within 28 days. Pending
the outcome of this and if the site is still to be placed on the register the
planning authority must notify the property owner of the decision and the owner
may, within 28 days, appeal the decision to An Bord Pleanála.
Calculating Cost
of Levy:
The planning authority is obliged to determine the market
value of a vacant site as soon possible after the site is entered on the
register, and at least once every 3 years thereafter, and notify the owner
accordingly. The owner may appeal this valuation to the Valuation Tribunal
within 28 days of the notice. Subject to the right of appeal on a point of law
to the High Court, the decision of the Valuation Tribunal is final.
The Planning
Authority or the Tribunal on appeal may, where it considers appropriate deem a
vacant site has a zero market value where –
A.
No
market exists for the site or
B.
The
site is situated on contaminated lands and the costs of remedial works exceed
the market value of the site.
What if there is
a loan on the site:
Where
a site is entered on the Register and subject to a loan the levy shall be
amended as follows –
·
If
the loan is greater than the market value then a zero per cent levy will apply.
·
Where
the loan is greater than 75 per cent but less than 100 per cent of the market
value then a rate of 0.75 per cent will apply.
·
Where
the loan is greater than 50 per cent but less than 75 per cent the levy will be
1.5 per cent.
Any unpaid vacant site levy becomes a
charge on the property and will remain a charge until such times as it is paid
in full. The obligations to discharge the levy and provide the Certificate of
Discharge apply to the Vendor and also the Vendor’s Solicitor acting in any
disposal.
Summary:
A
number of key questions (outlined below) still remain regarding the workings of
this levy and we are awaiting clarification from both the Local Authority’s and
the Department of Environment & Local Government on same.
Ø Is the presence
of a current Planning Permission sufficient to deem a site not Vacant or do
works have to be commenced?
Ø What if the site
is in an area where there is a lack of public services for the site to be
developed ie sewage, water, does the levy still apply?
Ø What happens if
it is uneconomical to develop a site and you can prove this, does the levy
apply?
I
strongly advise that owners review their land holdings if affected and
carefully consider the future asset management of same. Once more information
becomes available it will be easier to accurately assess the likely levy due on
various properties but this is certainly happening and the first bill is going
to arrive in 12 months time so people need to plan in advance. If anyone wants to
discuss in more detail please feel free to contact me.
Clive Kavanagh,
MSCSI, MRICS is a Director of Jordan Auctioneers & Chartered Surveyors who
has been
involved in the sales and valuation process of agricultural & development
lands for the last 14 years. He can be contacted in the office on 045 – 433550
or clive@jordancs.ie
Wednesday, 24 January 2018
REVIEW OF AGRICULTURAL LAND MARKET 2017 – OUTLOOK 2018
INTRODUCTION:
The start of a new year always brings with it an
abundance of economic reports, outlooks and projections on future demand,
supply, prices and trends. This will be evident across the entire property
market including agricultural land over the next number of months and with
headline grabbing prices and broad averages it can often be difficult to determine
the real market fundamentals as to what is actually happening.
In Jordan Auctioneers our practice is primarily based
in the Leinster Region and there are obvious variations in the price of land
from County to County. Applying an average rate across an entire region can be very
simplistic and although it can be referred to as a benchmark the variations on
same can be substantial.
Overall the agricultural sector had a challenging year
across the various enterprises. It was a positive year for the Irish dairy
sector with a dramatic recovery in the milk price leading to an increase in
national production of 8%. Finished cattle prices marginally increased in 2017
but the industry remains very vulnerable to fluctuations while Cereal prices
remained at historically low levels even though there was a general increase in
yields and some reduced input costs. Poor weather was a factor across all
sectors with July, August and September extremely wet putting added pressure on
farmers, particularly tillage operators.
The Brexit referendum result and depreciation of the
Pound Sterling against the Euro has created an immediate competiveness challenge
for the Irish agricultural sector and this is unlikely to be resolved in the
short term until further progress in made in negotiations between the various
sides.
Obviously confidence within an industry is an
important factor in lands sales and prices but this is less so in Ireland than other
European Countries. In Ireland Ireland gets sold once
every 400 years outside of a family compared to once every 70 years in France
THE LAND MARKET:
2017 proved a successful year in Jordan Town & Country Estate
Agents with agricultural sales and acquisitions across a wide spectrum and
totaling about 2,000 acres. Prices
ranged from €6,000 to €20,000 per acre. This is where the application of an
average becomes difficult. Each property has its own strengths and limitations
which impact on the price achieved. Some notable features of the market and key
determinants of price were:
§ Quantum and quality of land being offered
remains a key factors in any sale. Large land holdings are more in demand than
smaller parcels unless you have a number of adjoining farmers who are looking
to expand and willing to bid against each other. Quality is always a key
ingredient with land and considering the number of bad winters and summers
experienced in recent times selling poor or marginal land is very difficult.
§ This is the first year we noted more land
being purchased with bank lending. Up to now a lot of holdings had been bought
by the remains of development or Compulsory Purchase monies. While lending
terms and conditions tend to be strict there has been a freeing up of capital
for land purchases by farmers assuming they have a good track record, strong
business plan and plenty of security.
§ The variation in price is considerable and
depends on a number of key factors as already outlined. We sold land from less
than €6,000 per acre up to €20,000 per acre. The application of an average can
be dangerous and the specific characteristics of the property are of fundamental
importance as to where the value range lies.
§ Buildings, either houses or yards are not
adding considerably to the value being achieved. Land is being priced by
purchasers on a per acre basis and while buildings may complete a package and
increase its attractiveness they do not necessarily add to the end value.
§ 2017 saw the return of the ‘hobby farmer’
for smaller holdings and this is likely a result of improved economic factors
with many companies and business people doing better within their own industry.
In many instances these people come from a farming background and are looking
to have a house, yard and some land for their own interests.
§ The perception of land as a ‘safe haven’
for cash considering the experience of the collapse of the Celtic Tiger and the
investment markets has meant many people earning low interest rates on money
and subject to DIRT tax and bank charges continue to see land as a safe place
to ‘park money’ while either farming it in the interim or leasing.
§ Some farmers bought lands in the recession
on the edge of Towns and Villages which are now zoned for development. An
important consideration for anyone in this category is the new Vacant Site Levy
which is coming into force this year and will impose a 3% charge of the market value
of the lands in year 1 rising to 7% in year 2. Further investigation is
recommended by any owners affected.
THE OUTLOOK 2018
Predicting values heading into 2018 is difficult but
we envisage continued strong demand for good quality land and plenty of
activity. Confidence in the dairy sector is high at present and therefore lands
close to a number of strong operators is likely to command good interest.
The re-emergence into the market of the hobby farmer
for smaller holdings, particularly where there is a residence and yard could
act as a driving force for this type of asset especially where they are close
to good transport links and have accessibility to the main employment hubs.
Values in our opinion will be specific to the property
itself and therefore good advice whether buying or selling remains very
important so there are no false aspirations or misconceptions as to what might
be achieved.
Brexit does create uncertainty but for many farmers
they are not prepared to wait or put plans on hold particularly if they have
the financial means to purchase and land comes for sale close to them. The rise
in prices across the dairy sector has resulted in a considerable investment in
new parlours, sheds and facilities. Although this could create financial
pressures for some it also indicates a confidence and determination to try and
develop their business through more efficient practices and expansion.
Agricultural land in Ireland will always be traded and
in demand due to our emotional affiliation and inbuilt desire to acquire it.
The market is certainly one of the most stable assets classes within the
property market, assuming of course that it is bought at realistic levels. The
added bonus that land is a finite resource and unlike other investment products
cannot be wiped out by external factors will mean that it will continue to be
perceived as a safe haven for money even if the return is minimal. Farmers
remain hugely ambitious, prepared to work whatever hours needed to make
ventures viable but informed and sensible decision making is still a key
ingredient for success.
Clive Kavanagh, MSCSI, MRICS
is a Director of Jordan Auctioneers & Chartered Surveyors who has been involved in the sale of agricultural land
and country properties for the last 14 years and works directly with Paddy
Jordan. He can be contacted in the office on 045 – 433550 or clive@jordancs.ie
Friday, 3 November 2017
POST AUCTION PRESS RELEASE - 240 Acres at Ardanairy, Brittas Bay, Co. Wicklow
240 acres (97HA), Ardanairy, Brittas Bay, Wicklow
In
one of the largest agricultural land sales in County Wicklow Jordan Auctioneers
successfully sold 240 acres at Ardanairy, Brittas Bay Co.Wicklow on Thursday
last by Public Auction for a figure of €1,650,000. The purchaser is believed to
be a Wicklow based farmer and the figure achieved was well in excess of the
guide of €1.3m.
The
property was situated 3km from the M11 Motorway (Junction
19) at Jack Whites Cross and was offered for sale in 3 lots and while
there were several interested parties for each section it was the entire which
secured the highest bid.
The
land was all in grass divided by the local road into Lot 1 which extended to
circa 131 acres and Lot 2 which comprised 109 acres adjoining the European
Golf Course. The land was generally in need of some work and a portion was part
of a Special Area of Conservation (SAC).
In 2008 just
prior to the economic collapse a major tourism resort had been planned on the
lands to include a hotel, 18-hole golf course, holiday cottages, health
spa, fitness centre and sports academy. The idea was to turn Brittas Bay into a
year-round tourist destination with a diverse range of activities and
facilities but the Planning Application was subsequently withdrawn before a
decision was due and it now appears the land will continue in agricultural use.
Speaking after the Auction Paddy Jordan of the
selling agents commented that ‘the
quantum of land was a major selling point and although it required considerable
work to increase its production capacity it is difficult in Ireland to buy a
large block all together’
http://www.jordancs.ie/residential/brochure/240-acres-at-ardanairy-brittas-bay-wicklow/4124433
Wednesday, 1 November 2017
PRESS RELEASE - 3 Stephenstown Court, Two Mile House, Naas, Co. Kildare
3 STEPHENSTOWN
COURT,
TWO MILE HOUSE,
NAAS, CO. KILDARE
Magnificent Detached 4 Bedroom Residence on c. 2/3
Acre with Large Detached Garage/Car Port with Loft Storage Overhead
No. 3 Stephenstown Court is an exceptionally fine detached 4
bedroom c. 2,870 sq.ft. (266 sq.m.) family home in the sought after Village
environment of Two Mile House with the benefit of school, church, gym and
pub/restaurant on your doorstep. This is
a modern residential development of 23 detached houses in the Village centre
with generous open space only 450 metres from the church and primary
school. The house is to the front of the
development in a quiet cul de sac of 3 houses.
Approached via a recessed stone entrance with electric gates to a
tarmacadam drive, the house stands on a site of c. 2/3 acre of landscaped
gardens enclosed by trees and hedges providing a haven of peace and
tranquillity. The gardens are a main
feature of the property with beautifully presented flower beds, shrubs, decking
and pergola interspersed throughout the garden.
This is an ideal family home constructed in 2004 with stone,
brick and dashed exterior extending to c. 2,870 sq.ft. (266 sq.m.) of spacious
well proportioned light filled accommodation presented in excellent condition
throughout. The house has the benefit of
PVC woodgrain double glazed windows, dual oil fired/solid fuel central heating,
PVC fascia/soffits and large detached garage/carport with loft storage
overhead.
On entering the house you have a hall with oak floors leading
into sittingroom with built in display units, wooden floor and cast iron
fireplace, the heart of the home is the kitchen/livingroom where you have a
very large room with kitchen area, dining area and living space with solid fuel
stove, painted fitted kitchen with island unit, De Dietrich electric and gas
stove with utility and toilet off. Also
off the sittingroom is a generous sized sunroom/livingroom.
There is a family bathroom and 4 bedrooms (3 of which have
built in wardrobes) and wooden floors and the main bedroom suite has an ensuite
and walk-in wardrobe.
The Village is easily accessible to the surrounding towns of
Naas (c. 3½ miles), Kilcullen (c. 3½ miles) and Newbridge (c. 6 miles) offering
a wealth of facilities including schools, banks, pubs, restaurants and shopping
to include Tescos, Aldi, Lidi, B & Q, Harvey Norman, Argos, Currys,
Woodies, Dunnes, TK Maxx, Newbridge Silverware, Supervalu and the Whitewater
Shopping Centre with 75 retail outlets, foodcourt and cinema. The Kildare Retail Outlet Village is only a
10 minute drive offering designer shopping and discounted prices. Commuters have the benefit of the excellent
road and rail infrastructure closeby with the rail service available from Sallins
Station, bus route available from Naas and the M7 and M9 Motorway access
closeby.
This is an ideal spacious family home presented in pristine
condition in a sought after location, which must be viewed to be
appreciated.
The property is for sale through Liam Hargaden of Jordan
Auctioneers who is guiding €695,000 and he can be contacted on 045-433550 for
further information or appointment to view.
POST AUCTION PRESS RELEASE - 13 Acres at Tirmoghan, Kilcock, Co. Kildare
13 ACRES, TIRMOGHAN, KILCOCK,
CO.KILDARE
Jordan
Auctioneers sold 13 acres of good quality land just outside the village of Tirmoghan, a short distance from Kilcock by
Public Auction on Thursday last for a figure of €180,000 just short of €14,000
per acre.
The property comprised good quality land,
currently in grass laid out in 2 divisions. There were two active bidders at
the Auction which opened with an initial offer of €100,000 with bids of €10,000
before the hammer fell at €180,000 to a local purchaser.
Speaking after the Auction Clive Kavanagh of
the selling agents stated that ‘there had
been good interest in the land, particularly from people who were considering
purchasing with a view to applying for Planning Permission for a house, its
location close to Kilcock and the M4 meant that it was very accessible’.
Next
week Jordan’s Auction 240 acres near Brittas Bay, Co.Wicklow so they will be
hoping to keep getting good results before the end of the 2017 selling season.
Wednesday, 11 October 2017
POST AUCTION PRESS RELEASE - Woodville on c. 18 Acres and 100 Acres at Meelick, Portlaoise, Co. Laois
WOODVILLE &
MEELICK
PORTLAOISE
CO.LAOIS
Before
a packed attendance on Tuesday last Jordan Auctioneers offered for sale
Woodville House on 18 acres and 100 acres of agricultural land at Meelick
Portlaoise, Co.Laois. The land was offered for sale in 3 lots and while there
were several bidders for lot 1 & lot 2 it developed that the entire was
making more and this was put on the market at €1,300,000 before being sold for €1,350,000
to a local farming family. Jordan’s had guided the 100 acres at €1,000,000 so
the sale price of €13,500 per acre was a strong reflection both of the market
and the quality of the land.
The
entire was located a short distance from Junction 17, less than 3km from
Portlaoise town centre with approximately 80 acres in one block with two
farmyards and a further 20 acres on the opposite side of the Motorway.
Next
up was Woodville House which adjoined the above lands and this opened with an
initial offer of €500,000 with two active bidders. The property was placed on
the market at €610,000 and a number of further bids were received before the
hammer dropped at €630,000 to a Solicitor acting in trust on behalf of
an undisclosed client. Jordan’s had been
guiding this lot at €625,000.
Woodville,
owned by the Odlum family was described by Jordan’s as a charming Georgian
Residence with courtyard and Gate Lodge on c. 18 Acres of parkland and amenity
grounds. Built originally in the 1800s the residence comprises c.5,000 sq.ft of
accommodation and whilst in good repair required some upgrading.
Speaking after
the Auction Paddy Jordan said ‘both
properties had generated substantial interest throughout the marketing period
and while the house did require some upgrading it was in a good location surrounded
by splendid mature timber and within close proximity of the M7 and Portlaoise
town centre’. Paddy further said ‘the
land, whilst all very good is likely to have some long term potential and
although the price achieved was strong it could in time prove to be an
excellent purchase’
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