Written answer
Derelict Sites
141. Deputy Maurice Quinlivan asked the Minister for Housing, Local Government and Heritage the plans in place to simplify the process of addressing the issue of void housing and dereliction; and if he will make a statement on the matter. [48179/26]
Comment on this
147. Deputy Louis O'Hara asked the Minister for Housing, Local Government and Heritage to outline his efforts to tackle dereliction; and if he will make a statement on the matter. [46880/26]
Comment on this
173. Deputy Aisling Dempsey asked the Minister for Housing, Local Government and Heritage if he will report on measures being taken to tackle vacancy and dereliction; and if he will make a statement on the matter. [48080/26]
Comment on this
I propose to take Questions Nos. 141, 147 and 173 together.
Local authorities have been provided with a number of statutory powers and measures to deal with the issue of derelict properties, both in larger urban settlements and in smaller rural towns and villages.
The Derelict Sites Act 1990 imposes a general duty on every owner and occupier of land to take all reasonable steps to ensure that the land does not become, or continue to be, a derelict site. The Act also imposes a duty on local authorities to take all reasonable steps, including the exercise of appropriate statutory powers, to ensure that any land within their functional area does not become, or continue to be, a derelict site.
Local authority powers also include requiring owners or occupiers to take appropriate remedial measures on derelict sites, acquiring derelict sites by agreement, or compulsorily, and applying a derelict sites levy on derelict sites with a view to influencing property owners to bring their properties back into productive use or to put them on the market. It is a matter for local authorities to determine the most appropriate use of the legislation within their respective functional areas.
As announced within Budget 2026 and confirmed in Government’s Housing Plan, Delivering Homes, Building Communities, the existing Derelict Sites Levy is to be replaced with a new Derelict Property Tax, to be collected by the Revenue Commissioners.
The new Derelict Property Tax is a necessary step in tackling the scourge of dereliction. The new tax will actively incentivise property owners to bring neglected and derelict buildings and sites back into use, and in doing so, increase our national housing supply.
A wide package of measures have been brought forward by Government to address vacancy and dereliction in recent years. These measures include the provision of Vacant Homes Officers and Town Regeneration Officers in local authorities, the implementation of the Vacant Homes Action Plan and related resourcing and funding supports. This funding includes Call 3 of the Urban Regeneration and Development Fund which provides a €150 million revolving fund for local authorities to acquire vacant or derelict properties and sites for re-use or sale. The Fund is replenished from the proceeds received from the sale or reuse of properties, allowing a rolling fund for each local authority to tackle vacancy and dereliction.
In addition, the Vacant Property Refurbishment Grant provides up to €70,000 in grant support to bring derelict properties back into long term use as homes.
There has been significant interest in the grant since its launch, with over 17,400 applications made to local authorities to date and almost €285 million of grant funding paid out across the country. In April, I launched a new support package of up to €140,000 to bring vacant ‘above shop’ property in our cities, towns and villages into use as homes, including a new Vacant Above the Shop Grant and Expert Advice Grant.
This grant may be used in combination with exemptions from the requirement for planning permission for the conversion of certain types of vacant commercial property into residential use, such as ‘living over the shop’ accommodation, up to a maximum of 9 residential units.
The Regulations, which were first extended in 2022 under SI 75/2022 to include an exemption for the conversion of vacant pubs, have now been extended to the end of 2028. Up to the end of 2024, local authorities received 1,457 notifications from developers intending to avail of the exemptions. If acted on, this would result in 3,429 new homes across the country.
A Compulsory Purchase Order (CPO) Activation Programme was also launched by my Department in April 2023. The Programme supports a proactive and systematic approach by local authorities to the re-use of vacant and derelict properties. It also includes guidance for local authorities to actively use their legislative powers, including under the Derelict Sites Act, to acquire vacant and derelict properties, where engagement with owners has been unsuccessful. Under the CPO Activation Programme targets are set, with local authorities required to identify vacant and derelict properties, and record activity and outcomes. Under Delivering Homes, Building Communities, data will be published annually on local authorities’ achievements in progress and delivery.
The Town Centre First Heritage Revival Scheme (THRIVE) represents a transformative opportunity for our towns and communities. THRIVE is a €120 million government initiative, co-funded by the European Union and delivered through our Regional Assemblies in partnership with my own Department. THRIVE provides funding for the preparation of Town Centre First Plans, strategies and project development work in towns (c. €5 million in total) to enable future capital funding applications to be made for the identified projects in these plans. THRIVE also supports town regeneration through direct capital funding of €115 million in total for the implementation of identified heritage-related projects in town centres – with 19 projects currently being funded across the country.
The Living City Initiative is a tax incentive scheme designed to encourage the refurbishment and conversion of residential and commercial properties in designated inner-city areas. Its main aim is to bring vacant or underused buildings back into use, while also preserving the character and heritage of our urban core. Through this scheme, property owners and investors are offered tax relief as an incentive to restore and reuse these buildings thus avoiding them to fall into a derelict state. The scheme currently applies to specific ‘Special regeneration areas’ such as Cork, Dublin and Galway city centres.
As announced in Budget 2026, the Living City Initiative has now been extended to 2030, and expanded it to include residential properties built before 1975 and the NPF Growth centres of Athlone, Drogheda, Dundalk, Letterkenny and Sligo. This expansion highlights the Government’s commitment to regional development and revitalising towns beyond the main cities.
The Government’s Housing Action Plan, Delivering Homes, Building Communities, builds on existing measures and programmes to tackle dereliction and includes further additional actions in Pillar 1 for this area. It aims to end dereliction and vacancy in order to provide increased numbers of new homes and revitalise the communities in villages, towns and cities. Other specific actions beyond the Derelict Property Tax include the provision of a digital national Derelict Sites Register, increased numbers of properties on Derelict Site Registers, increased compulsory acquisition of properties where owners fail to engage with local authorities and increased collection of unpaid Derelict Site Levies.
Derelict buildings and sites are a blight on local communities that undermine local pride of place, encourage antisocial behaviour and impact negatively on the local economy. The range of existing initiatives and funding mechanisms established by the Government are successfully reducing the levels of vacancy and dereliction nationally. The implementation of new measures identified by the Government will further accelerate progress in eliminating dereliction, and increase housing supply across the country.