Developers were offering landowners, particularly of agricultural land, sums of money to secure the right to buy it when it was rezoned in five, 10 or even 20 years' time, an Oireachtas Committee was told yesterday.
Executive director of the Irish Council for Social Housing (ICSH), Mr Dónal McManus, told the Joint Committee on the Constitution hearings on rights to property that developers were dictating the market.
He said as there had been a fall-off in the number of sites provided by local authorities, for the first time many housing associations had to rely on acquiring sites on the open market.
"It is difficult for us to buy land at market rates. We're only small fry compared to the developers. Developers are taking out medium and long-term options on land and are driving the whole process."
Mr Peter Power TD (FF) said it was very much part and parcel of the reality of property development, and many developers were getting the option for up to 20 years.
The profits were so vast that developers were prepared to take the long-term view.
Mr Padraic McCormack TD (FG) said it was a dangerous precedent and a serious development.
Mr Jimmy Devins TD (FF)asked: "Are you saying that a developer goes along to a person with, for instance, agricultural land, and says I will give you X number of euros now with a right to purchase down the road?"
Mr McManus said from conversations he had with members, developers were taking out options on land.
The ICSH proposed that the process of zoning land for residential purposes would in the future be limited to five years. This zoning would be linked to pre-emptive rights for public bodies, who would be offered first choice on the acquisition of the zoned land where they needed to develop in the common good.
Cllr Tony McEvoy, Kildare Planning Alliance, said he knew of an option taken out on land in the late 1970s and £100,000 was paid.
The planning application had only now been submitted.
Mr Declan Jones, of Focus Ireland, said the State had no established right to housing, unlike other European countries.
It was incumbent on the committee to seek to obtain a right to housing as a basic human right.
For Forfás, in conjunction with the IDA Ireland and Enterprise Ireland, Mr Brian Cogan said the the agencies recommended a change in the Constitution to give greater weight to the common good.
They also recommended consideration of an additional article to re-emphasise the common good in the context of infrastructural development.
In a submission by the Workers' Party, Mr John Lowry said the Constitution provided for legislation that could be enacted.
The Constitution supported the WP demand that the Government must enact, without further delay, legislation that would establish the offices of a Residential Housing Lands Regulator and the introduction of a certificate of reasonable value within that.
It also proposed a rent tribunal which would regulate the private-rented sector.
The Irish Planning Institute submitted that the right to private property in the Constitution should be altered so that the right of ownership was separate to the right to develop.
The Hunting Association of Ireland said tampering with the present situation of rights of way would create widespread resistance.