Brendan Griffin (Kerry, Fine Gael)
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18. To ask the Minister for Housing, Planning, and Local Government if he will engage with the Minister for Finance to consider a comprehensive package for first-time buyers to incentivise the purchase and renovation of properties that are currently derelict or uninhabitable; and if he will make a statement on the matter. [33919/21]

Brendan Griffin (Kerry, Fine Gael)
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My question relates to the considerable number of properties around the country that are currently uninhabitable and have, in some cases, been abandoned for a long time. It is not viable for first-time buyers to purchase and do them up. It is a crying shame that we have so many vacant properties all over Ireland, yet it is too expensive to get them up to the proper standards. We need to be more imaginative and that is why I am asking the Minister to engage with the Department of Finance to see what can be done to assist such purchasers.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I thank the Deputy for the question. The Government set out its housing priorities in the programme for Government across numerous areas, including homelessness, affordable home ownership, private and social housing delivery, rent reform and planning. My Department is focusing on moving those priorities forward. To deliver on these commitments, I will publish a new housing policy and action plan, housing for all, in July. It will provide a whole-of-Government approach to housing policy and is at an advanced stage of development at present. The plan will factor in existing demand together with future projected demand and put in place the steps needed to deliver an average of 33,000 new homes per annum during the period 2020 to 2031.

In addition, we are advancing work on the town centres first initiative which is specifically considering the actions required to address vacancy and dereliction in town centres while supporting more opportunities for living in towns. The project is being led by colleague, the Minister of State, Deputy Peter Burke. My Department and local authorities are being proactive in dealing with vacant properties and there are currently a number of schemes available to incentivise suitable dwellings into liveable housing stock. I am also advised by the Minister for Finance that the help-to-buy initiative, a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment, may apply in certain circumstances relating to the conversion of non-residential buildings to residences. Similarly, the living city initiative may also be of relevance in certain locations. It may require some tweaking, which could be addressed in the town centres first initiative.

Brendan Griffin (Kerry, Fine Gael)
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I thank the Minister of State. It is welcome that the help-to-buy scheme would be expanded because it is a good scheme. It would make sense to do that where properties have been vacant for, for example, two years. I also feel that an expansion of what worked under the home renovation incentive, HRI, scheme, that is, tax relief on the VAT on materials and labour, in respect of such properties for first-time buyers would be very welcome. A long number of years ago, I helped to draw up what became the repair and leasing scheme. I was not happy with the amount of investment from the State that went into that. We need to give people support because we have seen that where grants are available, people use them.

I feel first-time buyers should be given exemptions to VAT charges, as I have mentioned. They should also be exempt from reconnection fees. Such fees are expensive and we could look at that with the utility companies, whether we are talking about the reconnection of water or electricity. Can we look at giving a capital gains tax break to a person selling a property to a first-time buyer? That might get properties onto the market and give the first-time buyer a more competitive place in that market. Those things could help to free up properties and put more money in the pockets of the people who are trying to purchase them to do them up. Those people are trying to compete with investors right now and they cannot do that.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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The Deputy has made excellent suggestions that should be given consideration. The Government and the Minister of State, Deputy Peter Burke, are considering, as a part of the town centres first initiative, a suite of measures that will support and unlock much of that potential. Deputies across the House have spoken about the need to unlock the potential in our smaller town centres and on our high streets. The option of living above shops should be available. Shops should be brought back down into full occupancy, given the scale of the challenges in retail. The town centres first interdepartmental group, established by the Minister of State, Deputy Peter Burke, in November 2020, will consider many of these fiscal measures, as well as other potential measures relating to the conservation of historic buildings and grant schemes that are much more targeted at bringing many properties back into productive use and providing a high level of thermal and acoustic comfort that makes it possible for people to live comfortably in town centres while a night-time economy is still being managed.

A wide suite of measures, therefore, will be brought forward under the town centres first policy, which will help unlock this potential we all want to see happen.

Brendan Griffin (Kerry, Fine Gael)
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Town centres are very important but there are also huge numbers of properties scattered all over the countryside. Such a scheme could very well apply to those properties. I will also add another suggestion. Right now, under planning laws, a person can extend at the rear of a building without planning. I believe the dimensions are approximately 400 square feet. It might make sense to double that exemption in rural areas, and perhaps within a 50 km zone, and increase the dimensions by 50% to 800 square feet in a rural area and 600 square feet in an urban area. Many of those properties were quite small compared to modern standards. Again, there would be less red tape for someone who is seeking to convert the property and, in some cases, build on such basic things as a kitchen or bathroom. A person should be able to do so without having to go through the whole planning process. Speed up the process, bring more of these properties into circulation and get people into homes. As I said, there are thousands of them out there. It is a crying shame in a housing crisis that we have so many vacant units all over the country. We need to be imaginative in how we solve this.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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The Deputy is correct. I see many of these properties as I travel across the country, not just in the west but all over. As I said, it is important that we use every mechanism possible to unlock the potential and get them back into productive use.

Specifically, around the town centres, we are looking at four specific areas around governance, enabling economic and social purpose, a new living towns approach and aligning investment and resources. That will, therefore, address those specific issues in urban clusters and smaller urban centres.

As Deputy Griffin said, however, this perhaps needs to be broadened out and looked at in consideration of rural houses and cottages, which are beautiful in their own right and have a heritage aspect, which could be brought back into use. The Minister of State, Deputy Burke, is certainly giving consideration to that but these are all very worthwhile suggestions. As I said, every opportunity we can get to try to unlock that potential should be explored and considered.

Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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That concludes questions to the Minister of State at the Department of Housing, Local Government and Heritage.