Dáil debates

Thursday, 9 March 2023

Ceisteanna Eile - Other Questions

Vacant Properties

11:10 am

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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88. To ask the Minister for Housing, Planning, and Local Government the deterrents he is progressing, or plans to progress, to tackle vacancy and dereliction. [11827/23]

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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121. To ask the Minister for Housing, Planning, and Local Government if he will provide a report on the Vacant Homes Action Plan 2023-2026; and if he will make a statement on the matter. [11591/23]

Photo of Seán CanneySeán Canney (Galway East, Independent)
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139. To ask the Minister for Housing, Planning, and Local Government if he will extend the Croí Cónaithe scheme to include vacant houses that can be refurbished for rental purposes; and if he will make a statement on the matter. [11919/23]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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141. To ask the Minister for Housing, Planning, and Local Government if he will report on the impact of the repair and leasing scheme and on the vacant property refurbishment grant scheme; and if he will make a statement on the matter. [11614/23]

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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146. To ask the Minister for Housing, Planning, and Local Government if he will introduce compulsory rental orders to tackle vacancy; and if he will make a statement on the matter. [11822/23]

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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Will the Minister of State outline the processes being put forward or that are planned to be put forward to tackle vacancy and dereliction? In 2021, 19 local authorities did not collect a red cent under the Derelict Sites Act, which has been in place for 32 years. The ban on eviction has been removed this week and derelict sites that could house people are lying idle.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I propose to take Questions Nos. 88, 121, 139, 141 and 146 together.

It is great to see so many Deputies here on this particular issue. Tackling vacancy is a key priority for this Government. Housing for All sets out a suite of measures to address vacancy and make efficient use of our existing housing stock. Significant progress is being made and I welcome the opportunity to mention briefly progress on some of those. For example, the Government launched the town centre first policy, a major new policy initiative that aims to tackle vacancy, combat dereliction and breathe new life into our town centres; €150 million for an urban regeneration development fund is being made available for local authorities to acquire vacant or derelict properties and sites for reuse or sale; full-time vacant homes officers are now in place across 30 of the 31 local authorities and the one outstanding local authority has advertised the post; and the Croí Cónaithe towns fund is successfully supporting the refurbishment of vacant and derelict properties through vacant homes refurbishment grants and the provision of serviced sites for people to build their own homes through the ready to build scheme. We have extended planning regulations that exempt certain vacant commercial premises from requiring planning permission for change of use for residential purposes, and we will shortly introduce a new programme for the CPO of vacant properties for resale on the open market. We are looking to do 2,500 of those over the next number of years.

One of the actions taken by the Government has been the introduction of the vacant property refurbishment grant. A grant of up to a maximum of €30,000 is available for the refurbishment of vacant properties for occupation as a principal private residence, including the conversion of a property which has not previously been used as a residence. Where the refurbishment costs are expected to exceed the standard grant of up to €30,000, a maximum top-up grant amount of up to €20,000 is available where the property is confirmed to be derelict, bringing the total grant available for a derelict property up to a maximum of €50,000.

The feedback on the grant has been very positive, with 1,250 applications reported to date. The grant is focused on providing homes for applicants.

While there are no plans to extend the refurbishment grant to allow for rental properties, the repair and leasing scheme is already available for the refurbishment of vacant properties for rental purposes. The scheme is a crucial initiative in tackling vacancy under Housing for All in addition to providing social housing. The scheme provides an upfront loan to a maximum of €60,000, including VAT, per unit to owners of vacant properties which require work to bring the units up to the required standard for rental. In return, the property is made available for social housing for a period of between five and 25 years. The cost of repairs is offset against reduced lease payments to the property owner. Since its introduction, almost 350 properties have been brought back into use.

The vacant homes action plan, which was launched in January, outlines all of the progress that has been made in addressing vacancy along with the actions that are being pursued to return as many vacant properties as possible back to viable use. As part of the plan, my Department will shortly introduce a new programme for the compulsory purchase, CPO, of vacant properties for resale on the open market. The action plan also contains a commitment to examine the potential use of compulsory sales orders. In this context, my Department will also consider the use of compulsory rental orders to give local authorities the power to acquire certain vacant properties for rent.

The most efficient home to deliver is the one which already exists. I firmly believe the commitment this Government has made to addressing vacancy and dereliction will continue to play a vital role in delivering homes and revitalising local communities. The Department is engaging directly with local authorities on this issue, in terms of vacant homes officers and derelict sites. There is active engagement as we speak.

11:20 am

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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The Minister of State has outlined a number of different proposals. The fact is none have made any difference. I challenge the Minister of State, Deputy O'Donnell, the Minister or the Minister of State, Deputy Noonan, to walk Dublin or Cork and see the amount of dereliction and vacancy. The Government's plan was to introduce a vacancy tax of 0.3%. France, for example, introduced a vacancy tax which started at 10% of the expected revenue the property would make, rising to 15%, resulting in a 13% reduction in vacancy over four years. The equivalent in this State would be more than 20,000 houses being brought back into use. None of the Government's plans are making a difference. We have a housing emergency. The ban on evictions has been lifted. People are looking at houses in every town and city. The Government is not moving fast enough. The ban will be lifted on 1 April.

Photo of Seán CanneySeán Canney (Galway East, Independent)
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The Croí Cónaithe scheme is very good, and I congratulate the Government on bringing it in. It is helping and beginning to take off. There is a lot of interest in my office about it and many are inquiring about it. There are a few anomalies in the scheme, as is the case for all schemes. The first relates to the fact that a house has to have been vacant for two years. There are cases where an older person has passed away and the house has been handed over to a child, grandchild or whoever, and they want to renovate it because it is run down. There should be something to help such people. A second house on a farm may have fallen derelict and perhaps there is no son or daughter to take it up. If such houses were brought back into use for rental purposes, it would help. I know of a proposal to convert three offices into housing. The owner applied for an exemption certificate but was refused. Such cases have to be re-examined.

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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I ask Deputies to adhere to their time as there are a lot of questions in this group.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Was I correct when I heard the Minister of State say only 250 properties have been dealt with under the repair and leasing scheme since it began?

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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It is 350 to date.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Would the Minister of State agree that is a very small number and indicates there is something wrong with the scheme? The suggestion he made in an earlier response to allow people to rent in the private market rather than to the local authority might be the way to go. Will the Minister of State tell me how many vacant homes officers are in place? How many are in County Cork, for instance? It is a very large county - three times the size of other counties. How many such officers funded by his Department are actively and exclusively working in this role?

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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My question is about compulsory rental orders. Last May, the Minister said he was open to the idea. What has he done about them since? Has he looked into this? As he knows, on the night of the census there were 35,000 empty rental properties in the country. Part of the solution to the housing crisis is to make the best use we can of existing housing stock, in terms of the crisis we are in as well as sustainability. This has been done successfully in other countries and cities with particularly high housing demand. Is this being considered? What are the thoughts of the Minister? Is he considering introducing it? Will he give us an update on how he has progressed on this since his comments last May?

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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Given that the Croí Cónaithe scheme was launched last November in certain rural areas and towns, a figure of 1,250 is a fair success so far. The repair and leasing scheme totals 350 properties, which comprise multiple units. The scheme is highly successful. There has been a publicity drive from the Department to get the information out as to how the scheme works. I encourage Deputies to tell people with vacant properties to avail of the scheme.

There are vacant homes officers in every local authority. We publicly stated during the last round of questions a month ago that in cases where local authorities wish to appoint additional vacant homes officers and they have a business case, they should make it to the Department. That particular area is an open book.

Deputy Canney acknowledged that Croí Cónaithe is a good scheme. I take his point on older people. It is something we will take into consideration. In many cases, people may be in a nursing home or so forth. The case he mentioned is valid. The rental side is not dealt with in the scheme, but we are open to looking at that and will take it on board.

In response to Deputy Stanton's comments on the repair and leasing scheme, the 350 properties involved comprise multiple units. I will get him the precise figure. There is a vacant homes officer in every local authority, except for Donegal which is currently recruiting. Regarding a previous question on local authorities applying for additional vacant homes officers, I took it upon myself to make inquiries. Cork has yet to make that application. It is important the Deputy goes back to that local authority. We are awaiting these requests, which have not yet come in.

Deputy O'Callaghan asked about CPOs for properties that are rented. That is being actively considered by the Department. It is something we are looking to do.

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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The Central Statistics Office, CSO, told us that, in 2021, there were 166,000 vacant properties in the State. The response of the Government was to introduce a levy of 0.3%. In the middle of a housing crisis, with the eviction ban ending on 1 April and a tsunami of homelessness coming at us for the summer, that was the plan. It is not good enough. The Minister of State failed to address this in his response. I hope he answers my next question.

The Derelict Sites Act has been in existence for 32 years, yet the Minister and Department are not enforcing it. How is that possible given we could be in the middle of a housing emergency and people are becoming homeless? When the ban on evictions was in place, homeless figures went up. We are now looking at a tsunami on 1 April. It is not good enough. More needs to be done. We need to start compulsorily purchasing derelict and vacant sites as soon as possible.

11:30 am

Photo of Seán CanneySeán Canney (Galway East, Independent)
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I thank the Minister of State for his reply. There is one other anomaly in that a house must have been built before 1993. There are lots of houses built since then that are vacant because they were never completed. People emigrated because they ran out of work or whatever when the economy went bust. The houses are there, and there is potential to create more living accommodation.

I return to the point I made about the exemption from planning. I saw an example yesterday whereby permission was refused for the conversion of three units from commercial use to residential use even though there would be no proposed change to the overall structure. The reason given is that it was deemed to be a development rather than three units. I will bring the details of the case to the Minister. It is important for us to promote the scheme and also the other scheme the Minister mentioned because there is potential in them.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I am amazed that Cork County Council has not yet applied for the funding. I will go back to it. Perhaps someone from the council is listening. At one stage, the chief executive told me that he would need a vacant homes officer for every town in the county. Is there an onus on the Department to be more proactive and to push local authorities into appointing these officers and to ask them to report on a monthly basis to it regarding the progress they are making in terms of the number of vacant houses they have identified? We still do not know the full extent of what is happening. Perhaps An Post could be asked to report as well. Does the Minister agree that the number of vacant properties may be much higher than reported? Will he get some senior officials in the Department to focus on this matter in a proactive way? Is there a senior official or a team in the Department focusing on vacant homes and derelict homes? How many officials are involved and what are their grades? Are assistant secretaries dealing with the matter and are they reporting to the Minister on a weekly basis regarding progress across the country?

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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I thank the Minister of State for his reply. It is very welcome that this is being actively looked at by the Department. I take it from that it is being looked at as part of the review of the private rental sector. What is the timeline on that and could he indicate as well not just the timeline for the review but the potential timeline for any legislation on compulsory rental orders? It would be great if he could give us more detail on that.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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In response to Deputy Gould, the Croí Cónaithe scheme has just been announced. Furthermore, there is a vacant housing officer in every council. There is also a town centre first housing officer. In addition, there are derelict site teams within local authorities. We are introducing a vacant site tax.

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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It is 0.3%.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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The fundamental issue is that there is an action plan for vacant properties. The sum of €150 million has just been announced by the Minister, Deputy Darragh O'Brien, under the urban regeneration and development fund, URDF, specifically to bring derelict sites back into use as homes. The resources are there, and we want to see action on the ground. We will work proactively with the local authorities on the derelict sites registers. Fundamentally, what we want to see is vacant sites around the country being brought back into use to provide home. That is happening.

Deputy Canney inquired about houses built after 1993. This is a matter of which we are conscious. A review is under way in respect of it.

In reply to Deputy Stanton, there is a section in the Department at a senior level that deals specifically with vacancy and that reports directly to the Minister. It is proactively engaging with local authorities. A meeting took place yesterday between all the vacant homes officers the length and breadth of the country and the Department. Further engagement is about to take place with councils on the URDF for town centres in order to get them to be proactive in bringing derelict sites back into use. No stone is being left unturned. The Minister met with the CEOs of all the local authorities last week. They are fully aware that they can apply for additional vacant homes officers. Ultimately, they must make the applications.

Deputy Stanton is a public representative for Cork East. He is coming here to represent the people. If a request is made and we agree to it, it will be up to the local authorities to be proactive and to make applications. If they are complaining to Deputy Stanton that the resources are not in place and if he gets a commitment from the Government that the resources are there, then I am sorry but the local authority needs to get the finger out and make the application.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Hear, hear.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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In response to Deputy Cian O'Callaghan, we hope to have the review completed by the middle of this year. It is being worked on actively at the moment. It is a priority. We want it to be empirically based in order that any further measures put in place on the rental side will bear fruit.