TACKLING IRELAND’S VACANCY CRISIS
Cross-sector coalition calls for stronger action on vacancy and dereliction to deliver more housing
Dedicated vacancy teams in local authorities, expanded reuse grants and a wider suite of tax measures are required to tackle Ireland’s vacancy crisis and deliver much needed homes, according to recommendations launched by the Vacant to Vibrant Building Alliance (VVBA), a cross-sector coalition of business, civic and environment leaders.
Speaking ahead of the launch, Phillip Lee, VVBA Chairperson, commented: “Budget 2026 contained welcome new measures to tackle vacancy and dereliction, but bolder and more integrated policies are needed to accelerate action on vacancy. With the right policies to direct and incentivise reuse of derelict, vacant and under-used buildings, a significant number of homes can be delivered quickly, at lower cost to society and with fewer carbon emissions than new build, all while reinvigorating and re-energising our villages, towns and cities. The new Housing for All plan provides the perfect opportunity to address the vacancy challenge.”
The four primary recommendations from the Vacant to Vibrant Building Alliance are:
• Establish adaptive reuse programme offices in local authorities
• Expand the Croí Cónaithe initiatives
• Introduce targeted time-bound tax incentives and increase the vacant tax
• Improve planning processes and building regulations
VVBA Chairperson Philip Lee added: “Establishing adaptive reuse programme offices with multi-disciplinary teams in local authorities is critical. These reuse teams would include architects, surveyors, engineers and other relevant professionals. They would assist with driving public acquisition of vacant buildings, delivering complex projects and providing guidance and support to building owners, helping them navigate issues with planning and building regulations.”
VVBA also recommends expanding the Croí Cónaithe Initiatives to cover complex multi-unit redevelopment and adaptive reuse projects. Marion Jammet, Director of Policy and Advocacy at the Irish Green Building Council, said: “To accelerate the reuse of vacant properties and deliver homes in our towns and cities, the vacant property refurbishment grants should be expanded. In particular, it needs to be based on the number of residential units created, rather than per building and to be made available for mixed-use properties and for businesses. This is key in supporting ‘above the shop’ living. For complex projects, up-front feasibility study grants are also needed to reduce risk and help kick-start the renovation process.”
While Budget 2026 contained new taxation measures to tackle vacancy, VVBA says that a more comprehensive suite of incentives is needed to have a real impact. This includes a time-limited Capital Gains Tax exemption for those who sell vacant properties for proven residential use and a reduction in VAT on construction products that contribute to carbon savings.
Edward Mc Auley, Director of Practice & Policy at Society of Chartered Surveyors of Ireland, said: “Budget 2026 points us in the right direction for accelerating action on vacancy, but a more comprehensive suite of fiscal measures is needed to accelerate action to more effectively unlock the potential to deliver homes from vacant dwellings in Ireland.”
Meanwhile Tom Gilligan, Director of Services at Mayo County Council, said: “Vacancy and dereliction remain a significant challenge in many of our rural towns and villages, but with the right policies and incentives we can turn many of these buildings into new homes right in the heart of our communities, thus reinvigorating our urban centres.”
How to unlock the potential of underused buildings in Irish towns and cities
Establish adaptive reuse programme offices in local authorities
Create multi-disciplinary “adaptive reuse” offices in local authorities to lead large-scale reuse of vacant and underused properties, including non-residential buildings.
Allocate responsibility for driving public acquisition, resolving title and ownership issues, delivering complex projects, and providing technical and financial support to private owners to local authorities.
Expand the Croí Cónaithe Initiatives
Expand the Croí Cónaithe initiatives to offer grants per residential unit to encourage more complex projects and address proven viability gaps, particularly with regard to over the shop spaces. Expand the Croí Cónaithe initiatives to include financial support for mixed-use properties and business applicants. Provide up-front feasibility grants to support early project development.
Introduce time-bound targeted tax incentives and increase vacant tax
Use targeted time-bound tax incentives to encourage the reuse of vacant and derelict properties, including introducing a temporary Capital Gains Tax (CGT) exemption for owners selling vacant properties for residential reuse and a 9% VAT rate on construction products that deliver carbon savings. Complement the tax incentives with a Vacant Property Tax collected by the Revenue Commissioner.
Improve planning processes, Building Regulations and associated Technical Guidance Documents
Resolve inconsistencies in how planning policy, building regulations and associated Technical Guidance. Documents are interpreted and applied, reducing uncertainty and improving project viability.
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Michael McDonnell Managing Editor of Irish Construction Industry Magazine & Plan Magazine
