John Cummins (Fine Gael) | Oireachtas source

The topic of rental tenancies has never been more in focus, and that is why I have submitted this Commencement matter. I seek to activate derelict and vacant properties for use for housing and to deliver a volume of cost rental tenancies for those above the threshold for social housing and who either cannot or do not wish to own a property.

Let me start with the first suggestion, which is to expand what I believe is a very popular scheme, namely, the vacant property refurbishment grant scheme. When it was launched in July 2022 it inexplicably excluded one-off rural houses and those in cities. However, following lobbying, which I was very happy to lead, the scheme was expanded in quarter 4 of last year to include these. This has resulted in a huge uptake in queries to local authorities right across the country.

The grants, of €30,000 and €50,000, respectively, are currently open only to owner-occupiers where there is a commitment made to reside in the property for a period of ten years and the clawback is in place. However, given the context of the reduced number of rental properties on the market and the ongoing challenges experienced owing to the availability of rental properties in both urban and rural settings, I believe now is the time to extend the scheme to those who wish to refurbish a vacant or derelict property and rent it out on the private market. I suggest that the ten-year clawback remain in place to ensure the property remains in the private rental market for a period of ten years. That would undoubtedly open up the scheme to many more individuals and families with a vacant or derelict property who do not have the firepower to renovate it or do not want to live in it because they already have their own property, but who, for historical reasons, want it to remain in the family. The latter motivation is probably more common than one might think.

It is my considered opinion that the properties in question are really the only ones that do not have a bespoke scheme. The repair and lease scheme, on which I will touch in the second part of my contribution, is in place, but there is now an opportunity to extend the scheme in question to allow us to provide much-needed rental homes to individuals and families.

Let me turn to the second aspect, the expansion of the repair and lease scheme. It has been very successful in my county, Waterford, but unfortunately not in others. There are many reasons for that. I have asked for targets to be set for local authorities. That has not happened to date but it is finally in train according to correspondence received by the joint committee yesterday. The scheme, which has worked very well, is geared only towards putting social leases in place for the council. I am seeking the expansion of the scheme to enable councils and approved housing bodies to provide cost-rental tenancies on the same basis. The scheme operates by providing up to €60,000 of the up-front cost of renovating a vacant or derelict unit. There is a discount of 15% to 20% on market rent factored in. The full cost of the €60,000 is recouped over the course of the period of the lease, but the arrangement could also be applied to cost-rental tenancies and would essentially operate on a revenue-neutral basis because, unlike the social tenancy, which is based on paying a differential rent, the cost-rental tenancy would be based on the market rent or the market rent minus the discount.

I put my proposal to officials well over 12 months ago. It has not been taken up to date. There is now an opportunity to do so given that we are going to be putting the cost-rental backstop in place for cost-rental tenancies. I ask that it be expedited. There is no better location than Waterford in which to pilot the scheme, if it needs to be piloted at all. Waterford City and County Council is willing to do this. I ask that the proposal be implemented without delay.