Pathway to addressing vacancy and efficient use of existing stock

The Housing for All plan is actively working to ensure existing vacant homes are brought back into productive use. Maximising the use of our existing housing stock, especially in our towns and cities, is a key priority for Government and represents a critical element of a sustainable housing policy.

Among the main actions under this pathway committed to or delivered are:

• ‘Town Centre First – A Policy Approach for Irish Towns’. This new policy is tackling vacancy, combatting dereliction and breathing new life into town centres. Town Centre First contains 33 unique actions which will give our towns the tools and resources they need to become more viable and attractive places in which to live, work, visit and run a business.
• A new Croí Cónaithe (Towns) fund, launched in July 2022. The fund provides Vacant Property Refurbishment Grants of up to €30,000 (for vacant properties) or €50,000 (for derelict properties) to convert these properties in our towns and villages back into residential use. The scheme has recently been expanded to support the provision of serviced sites for housing to attract people to build their own homes through the ‘Ready to Build’ scheme.
• A Vacant Homes Tax came into effect in 2023. The primary purpose of this new tax is to increase the supply of homes for rent or purchase to meet demand. The tax applies to residential properties that are occupied as a dwelling for less than 30 days in a 12-month period.
• A new short-term letting registration system requiring short-term and holiday lets to register with Fáilte Ireland to ensure that homes are used to the best effect in areas of housing need.
• Reform of the Fair Deal Scheme, which has removed disincentives to selling or renting unused homes.
• The activation of vacant properties as key criteria in the Urban Regeneration and Development Fund and the Rural Regeneration and Development Fund. The Government has created a new €150 million fund for vacancy-related projects being undertaken by local authorities.
• Local Authorities to be supported to purchase and resell up to 2,500 identified vacant properties in their areas. Compulsory Purchase Order powers will be used where necessary.
• Publication of a Vacant Homes Action Plan, which consolidates the various strands of work to address residential vacancy. The plan was published in January 2023 and provides data on progress and delivery to date and actions being pursued.
• Commence section 9 of the Local Government Rates and other Matters Act 2019 with a view to empowering Local Authorities to offer rates-based incentives for the conversion of suitable vacant commercial properties to residential use.
• Review the Rural Regeneration and Development Fund, with a view to ensuring its continued alignment with Our Rural Future priorities, the Town Centre First Policy and other key strategies, and to address issues around vacancy, dereliction and the achievement of continued economic development in rural areas.
• Explore the potential of minor capital grants to Higher Education Institutions to assist with small projects and refurbishment of existing stock to provide additional student accommodation for target groups in areas of need.

Read this pathway of ‘Housing for All’ in full.

Vacant pubs accounted for one-fifth of planned conversions of vacant commercial properties into homes in 2022

On 27 February 2023, figures published show that one-fifth of notifications received by local authorities in 2022 to convert certain vacant commercial premises into homes related to former pubs.

In February 2022, existing regulations exempting certain types of vacant commercial premises from planning permission were extended and amended - where it is intended to provide residential units - to include former pubs. The regulations aim to promote the re-use of vacant commercial buildings for much-needed housing supply and to renew urban areas. The extension of the regulations to include pubs was intended to increase housing supply . The regulations, a part of the government’s Housing For All plan and Town Centre First Policy, are in place to the end of 2025.

Read more on conversion of vacant commercial properties

2,307 vacant social homes returned to active use

On 9 February 2023, figures published show 2,307 vacant social homes were brought back into active use in 2022 under the Voids Programme. This is just above the anticipated figure of 2,273 vacant social homes, indicating that the intensive work in 2020 and 2021 by local authorities in this area has reduced the number of vacant social homes. The Voids Programme supports local authorities in preparing vacant homes for re-letting.

Making more efficient use of existing housing stock is a key action in the government’s Housing for All plan. The Voids Programme builds on the ongoing work to tackle vacancy and dereliction and bring vacant properties into re-use for housing.

Read more on vacant social homes

New Vacant Homes Action Plan and details of new €150 million URDF vacancy fund

On 30 January 2023, a new Vacant Homes Action Plan and a new €150 million fund for local authorities to tackle vacancy and dereliction to support the plan was launched by the Government. The fund and plan build on ongoing work to tackle vacancy and dereliction and bring vacant properties into re-use for housing.

The Vacant Homes Action Plan outlines progress in implementing actions relating to vacancy and efficient use of existing stock contained in Housing for All, the government’s housing plan to 2030. The plan also supports people to buy, lease or sell vacant property, or convert vacant commercial property into homes.

Read more on the Vacant Homes Action Plan and the new fund

Short-Term Tourist Letting Register to be established through new legislation

On 7 December 2022, the Government approved the priority drafting of the Registration of Short-Term Tourist Letting Bill and publication of the General Scheme of the Bill.

Housing for All commits to the development of new regulatory controls to ensure that houses are used to best effect in areas of high housing demand. The new register will help ensure that properties built for residential accommodation will be used for that purpose, and Fáilte Ireland estimate that up to 12,000 properties could come back into the long- term rental market or the residential housing market as a result.

Read more about the short-term tourist letting register announcement

Vacant Property Refurbishment Grant expanded to cities and remote rural areas

On 15 November 2022, the expanded Croí Cónaithe Vacant Property Refurbishment Grant was launched.

The expanded grant now includes eligible vacant properties in both cities and more remote rural areas (in addition to those in towns and villages, which have been eligible since July). The scheme’s expansion will help bring vacant and derelict properties back into residential use and ensure the existing housing stock is used to the fullest extent possible. It will also help limit emissions from residential construction and add vibrancy to Ireland’s cities and rural areas.

Under the Croí Cónaithe Vacant Property Refurbishment Grant, €30,000 is available to homebuyers to refurbish a home which they will live in. Where a property is derelict, a maximum top-up grant amount of up to €20,000 will be available, bringing the total grant available for a derelict property up to a maximum of €50,000. The grants can also be combined with the SEAI Better Energy Home Scheme that covers works of up to €26,750.

Read more about the vacant property refurbishment grant

Fair Deal assessment of rental income reduction under “Housing for All”

On 2 November 2022, the government welcomed the commencement of the Part 9 of the Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022. This increases the amount of rental income that nursing home residents can retain under the Fair Deal from 20% to 60%.

The government committed to making this change under Housing for All, to remove a disincentive to renting out the vacant home of a resident in long-term nursing home care under Fair Deal. It is estimated that this measure will bring between 400 and 2,000 rental properties into use, at any one time, once fully established.

Read more about the Fair Deal assessment of rental income reduction

New ‘Ready to Build’ Scheme

On 21 September 2022, Ministers announced the ‘Ready to Build’ Scheme. The scheme, which will be funded under the Croí Cónaithe (Towns) Fund, will see local authorities make available serviced sites (that is, sites with the necessary infrastructure such as electricity, water and wastewater) in towns and villages to potential purchasers who wish to build their own home.

The sites will be sold at a discounted rate of up to €30,000 from the market value. The discount will be determined by the cost of servicing the site.

Many areas in towns and villages of all sizes face the blight of vacant and undeveloped sites, which, if brought back into use, could add real vibrancy to those communities. The scheme fulfils a commitment in the government’s Housing for All plan, and supports the Our Rural Future policy and the recently published Town Centre First policy, which aims to tackle vacancy, combat dereliction and breathe new life into our town centres.

Read more on the new Ready to Build Scheme

New €50m Croí Cónaithe (Towns) Fund to Refurbish Vacant properties, Increase Home Ownership and Revitalise Communities

On 14 July 2022, a new €50m Croí Cónaithe (Towns) Fund was launched which will support bringing vacant and underused buildings in our towns and villages back into residential use.

The scheme is set to benefit those who wish to turn a formerly vacant house or building into their principal private residence and become part of the community in the area.

The aim is to create town centres that function as:

• viable, vibrant and attractive locations for people to live, work and visit
• the service, social, cultural and recreational hub for the local community.

The fund will be delivered through local authorities who will provide a grant to support the refurbishment of vacant properties, with priority given to applications in areas where the level of vacancy or dereliction is high.

Read more on the new Croí Cónaithe (Towns) Fund

Cabinet agrees to stronger controls on short-term let

On 10 July 2022, the government approved strengthened regulatory controls on the short-term letting of non-principal private residences in rent pressure zones. This will mean that online platforms will not be able to advertise properties in Rent Pressure Zones (RPZs) which do not have the required planning permission. Non-compliance with these provisions will be an offence for both the individual property owners concerned and the online platforms.

The new controls will result in more homes returning to the long-term rental market in RPZs where rents are highest and where households have the greatest difficulty finding affordable accommodation.

Read more on the new regulatory controls on short-term letting

No planning permission needed for conversion of former pubs into residential units

On 25 February 2022, Minister O’Brien signed Planning Regulations that will exempt the conversion of former pubs into residential units from requiring planning permission. The new exemption is contained in an extension of 2018 Planning Regulations that allow a change of use of certain vacant commercial premises to residential use. This includes vacant areas above ground-floor premises, such as ‘above shop’ living. The exemptions aim to increase the re-use of vacant commercial buildings to increase much-needed housing supply and renew urban areas.

Read more on the exemption for the conversion of former pubs

Town Centre First’ Policy Launched

On 3 February 2022, the Government published Town Centre First – A Policy Approach for Irish Towns. The policy aims to tackle vacancy, combat dereliction and breathe new life into town centres. Town Centre First contains 33 unique actions which will give our towns the tools and resources they need to become more viable and attractive places in which to live, work, visit and run a business.

Read more on the Town Centre First Policy