Capping: Powerful property interests expressed strong opposition to any capping of the value of development land in submissions on property rights to the Oireachtas Committee on the Constitution.
The submissions reveal that major groups such as the private development firm Treasury Holdings argued strongly against any capping of land values.
The auctioneering group, Hooke & MacDonald, and the professional auctioneering institutions were among others opposed to a cap.
Treasury Holdings said that the Planning and Development Act of 2000 already had the effect of disregarding the increase in value of zoned land when it was being compulsorily acquired.
Such a provision was "quite wrong", the company said. "While one price would be available on the open market for such lands, a greatly reduced price would be payable if the same lands were subject to a compulsory purchase order. It cannot be right that a citizen is forced to take less for his land depending on the identity of the the purchaser."
Hooke & MacDonald said calls for the capping of site prices were unnecessary and dangerous. "A cap on land prices would automatically reduce supply and force new home prices up." The Institute of Professional Auctioneers and Valuers said a cap on the price of development was feasible, but not desirable. "Placing a constitutional cap on land prices would appear to be against the spirit of constitutional right to private property," it said.
"A constitutional change to cap land prices could be followed later on by measures to cap the price of houses themselves."
The Irish Auctioneers and Valuers Institute said any capping of the value of land "will significantly reduce the future supply of building land, and any consequential reduction in the supply of houses, will, inevitably, result in even higher house prices".
