The State is expected to take up to half of the increased value of land after it is rezoned, as part of the Housing for All plan.

The policy is aimed at preventing "hoarding" and freeing-up land that could potentially be developed for housing, as well as making more funds available to the State for housing and other infrastructure.

Government sources have confirmed that the laws would require land owners or developers to pay the State up to half the increased value of the property, after rezoning, as a condition for planning permission to develop it.

The policy is described as "land value sharing" has been agreed between the leaders of the three coalition parties and is subject to approval by the Attorney General.

It is expected that legislation would be drafted and debated when the Dáil resumes in September.

It is seen in Government as a centrepiece policy of the Housing for All plan, which is expected to be published in late August or early September.