Developers getting planning permission to increase asset value.

sparkling sea

I was dumbfounded to read in todays Irish Independent that planning permission has been granted for 40,000 houses or so desipte the fact that its very unlikely that these houses will be built - and aren't needed in the most part.

The paper states that Planners approved 43,000 apartments and houses in 2009 and 2010, "Planners last night confirmed that many of the permissions were granted to developers hoping to increase the value of their land banks before they go to NAMA" all this despite many house lying empty.

Although new laws are about to come into existance to stop this practice, the law cannot be applied retrospectively and the new laws have not been introduced yet - Planning permission is however still be given out.

How is this kind of thing still happening - I just don't understand - where are politicans again

Biggins

One of the reasons could be is that with re-zoning and/or permission for building, sometimes the value of land goes up.
Sounds like more madness whatever the reason.

sligopark

WHAT?

Why doesn't NAMA just give up the pretence about chasing down the money?

Thanks Brian(s).

PCPhoto

sounds to me like the council "town planners" are trying to justify their jobs !!!

doubt there has been job losses in those areas despite the lack of construction work.

the planning permission was applied for ...and granted ....on the basis that with planning permission the land is more valuable, if you have land with no planning permission then the land has a limited use - unless you have property on adjacent lands.

sparkling sea

PCPhoto wrote: »

sounds to me like the council "town planners" are trying to justify their jobs !!!

doubt there has been job losses in those areas despite the lack of construction work.

the planning permission was applied for ...and granted ....on the basis that with planning permission the land is more valuable, if you have land with no planning permission then the land has a limited use - unless you have property on adjacent lands.

Yes but this land is going into NAMA so it will appear the value of NAMA assets is much higher then it is - like the whole property bubble that lead us here

Fratton Fred

Slightly off topic, but related.

Near where I live, a develop bought a bungalow, knocked it down and built two modern semis. These are currently on the market for 1.75m (which when he told me prompted my response of "no, I'm only enquiring about one, not both).

This guy will be lucky to get half of what he is after, yet despite having no interest in the last six months, is still persisting with asking a stupid amount.

Is there any advantage for him in doing this? Can he dump this on NAMA and walk away, whereas.if he sold them for a realistic price he would probably make a loss?

What's his game, or is he just stupid?