‘€5,000 simply for permission to build a house’ – Mayo councillors call for review of planning levies
Concerns over the cost of development contributions levies were raised at the April meeting of Mayo County Council, as councillors called for a review of the system in light of escalating construction costs and the wider cost-of-living crisis.
Representatives said constituents were increasingly questioning the contribution required once planning permission is granted, and argued that the levies should either be reduced or ring‑fenced to benefit the specific area where the development is located.
A development contribution is a payment made after planning permission is granted, intended to help local authorities fund infrastructure and services linked to new developments, including roads, footpaths, water services, drainage, parks and community facilities.
All local authorities have development contribution schemes to help cover any shortfalls where central government funding does not fully cover the cost of infrastructure.
At the meeting, the issue was raised particularly in relation to rural housing, where councillors said applicants often see a limited direct benefit from the contributions they must pay.
Cllr Chris Maxwell said two constituents had recently contacted him after receiving planning permission and queried the development charges. One, he said, was being asked to pay €3,900 and another €5,936.
Both were building in rural areas, and he questioned which services they were directly benefiting from, noting that the only public infrastructure around them was the road outside their door.
Cllr Maxwell questioned whether development contributions could be ring‑fenced so that the money is reinvested into the area where the applicant is building their home.
Cllr Michael Kilcoyne also raised concerns, saying a constituent had approached him regarding development contributions in excess of €5,000.
“Yet here we are telling people that they should be trying to build houses,” he said.
He asked the Chief Executive of Mayo County Council, Kevin Kelly, whether the council could review the contribution system in light of the current cost‑of‑living and housing crisis.
“Because of the times we are in, and we are in bad times, can we review the levies that are being imposed when planning permission is given for a house?” he asked.
Cllr Kilcoyne said the issue affected rural areas more, as applicants often feel they see little direct benefit from the contributions they are required to pay.
He said the constituent who contacted him was building in a rural location and was already facing additional costs to Uisce Eireann for their water connection and separate charges for sewage.
“€4,000 or €5,000 simply for permission to build a house, and then pay for your materials, pay for your VAT. I can see why people are out on the streets,” he said, in reference to recent protests in Castlebar.
In response, the council’s Chief Executive, Kevin Kelly, said the authority would examine the issue in the context of the 2024 Housing Act and assess whether it is possible to make any adjustments to development contributions.
He acknowledged that while figures such as €3,900 or €5,000 were significant for individuals, contributions generally reflected the scale of the application and the cost of providing infrastructure for the development.
Addressing the suggestion that contributions could be ring‑fenced for specific areas, Mr Kelly said this was not possible.
“The principle is not about what is outside of the door. People are living in a county and using facilities in villages and towns and different places,
“The discussion around retaining contributions in an area has been discussed across the country, it has advantages and disadvantages,” he said.
He added that overall development contribution income in Mayo remained limited due to low levels of construction activity in the county at the moment.
This article has been funded by the Local Democracy Reporting Scheme.