John Cummins (Fine Gael)
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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.

Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank the Senator. It is always very satisfying to talk to him about any housing matter.The Senator's suggestions have been taken on in many cases. I hope his suggestions in the latter part of his contribution will be taken on in this instance. I am not often in a position to deliver good news, but it is intended that the refurbishment scheme the Senator described will be extended to include properties, which will be made available for rent from 1 May, as well as reviewing the grant rates applicable. That was on foot of the Senator's work and his suggestion at earlier stages.

Pathway 4 of Housing for All sets out a blueprint to address vacancy and make efficient use of our existing housing stock. None of us want vacant properties, and those brought back into use could add real vibrancy and provide additional accommodation. It really should be done. 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 not previously used as residential. 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. I am well aware the Senator is already aware of that, but I will put it on the record again.

Feedback on the grant has been very positive, with almost 1,400 applications reported to date. The Government is building on the initial success of the grant and it is planned that the eligibility date for properties, which is currently properties built before 1993, will be changed to include properties built prior to 2007, by 1 May. It is also planned that the refurbishment scheme will be extended to include properties which will be made available for rent from 1 May, as well as reviewing the grant rates applicable.

The repair and leasing scheme, RLS, provides an upfront loan, to a maximum of €60,000, including VAT, to owners of vacant properties that require work to bring the units up to the required standard for rental properties. It is a social housing delivery mechanism at present. Given the current demand for social housing across all local authorities, the principal aim of the scheme remains the provision of social housing. I am told by the Department that the Senator's scheme will be considered, but the Senator says he has raised it. I understand that Waterford City and County Council has raised a cost-rental RLS with the Department. Given the success of Waterford council in its RLS delivery targets to date, it should be heard clearly.

It is quite extraordinary to see the scale of the council's success, relative to every other county council. The total dwellings delivered by Waterford council to the end of quarter 3 in 2022 was 164. It has a target for 2023 of 80 dwellings. There is no other council that comes remotely close. The other councils are: Wexford at 28 dwellings; Mayo at 19; Limerick at 30; Fingal at 28; and Clare at ten. I recall a similar situation with regard to compulsory purchase where Louth County Council was a standout council. It shows how the dedication of a particular person or group of persons within a council really focused on a particular project can be so effective and successful. Having had this very strong success which delivers for the people of Waterford - I know the Senator has been very strongly involved in that - it seems Waterford council's suggestions on the expansion of such a scheme would be very welcome.

The particular pressure point at present is not just social housing, but the people who would be eligible for cost rental. I know the intention is to do more and extend the eligibility further. It seems a completely sensible approach to be able to look at something such as that. I wish to set out the success of Waterford in the scheme so far. It seems obvious the council should be heard fully on its proposal.

John Cummins (Fine Gael)
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I thank the Minister of State for what is an exceptionally comprehensive reply. It is obviously fantastic news that the vacant property refurbishment grant will be extended, not only to owner occupiers, but those who wish to do up a property and lease it to the private rental market. It will have a tangible impact in providing additional rental properties within the market. I ask that the ten-year clause is kept in there, to ensure the property remains in the private rental market for at least that period. I welcome the Minister of State's response in that regard.

The proposal to have a cost-rental version of the RLS makes complete sense. Waterford has seen considerable success and, in fact, all agencies and the council would attribute the fact that no bed and breakfasts or hotels have been used for homeless accommodation in the past three years in Waterford, to the success of providing those much-needed one- and two-bedroom properties in predominantly urban areas throughout Waterford. I know from her response that the Minister of State is committed to taking it back to the Department, notwithstanding it not being her Department. It makes complete sense to have a cost-rental version of the scheme. It is not just about the squeeze in the social housing sector, as the Minister of State has said, but the people who are above the social housing income limits.

Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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The Senator is absolutely right to identify that social housing delivery is always needed and continues to be needed. I, like the Senator, have constituents who have received social homes in the past number of weeks and months and are happy about that. There is a positive trend on which we must continue to work. However, the particular point of difficulty at present is the group who are not eligible for social housing. The waiting list has come down by more than one third in the past number of years. We also know there is considerable private rental sector pressure and the demand for cost rental will continue to expand. Cost rental is a new form of social housing delivery that we have prioritised. We have legislation in respect of it. The Land Development Agency has been tasked with developing and rolling it out with all the approved housing bodies. I would have thought that a measure such as this, which complements existing schemes, could be extended to that pressure point. It is very welcome. The total dwellings delivered from the RLS last year, until the end of quarter 3, was 349. Waterford delivered 164 of those. That is the scale of Waterford's success and it is to be commended on such success.

Mark Wall (Labour)
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Before Senator Dooley starts, I will welcome visitors from St. Joseph's National School from Bekan in County Mayo, who are with Deputy Dillon today. I hope they enjoy their stay.