Empty homes: €200m set for social housing buy/lease scheme

The Government is to provide almost €200 million in the coming years for schemes that will see councils and housing bodies buy or lease derelict homes and refurbish them for social housing use.

Minister for Housing Simon Coveney made the announcement at a briefing to provide further detail on how the Government's housing plan will increase the number of social housing units in the years ahead.

The plan, called Rebuilding Ireland, aims to provide an additional 47,000 social housing units by 2021. Mr Coveney outlined further details of the second pillar of his plan, called "accelerating social housing", at an event in Dublin's south inner city on Thursday.

A new so-called "repair and leasing scheme" will be tried out on a pilot basis over the next six months in Carlow and Waterford and will be rolled out nationally thereafter, at a cost of €140 million until 2021.

The scheme is designed to bring vacant and unused houses back into use by allowing councils enter into long-term leases with property owners, refurbishing the property and then letting it out to tenants.

Lease arrangement

The refurbishment costs will be paid upfront by the councils or an approved housing body and the property owner will in return agree to a lease arrangement for a length of time that is linked to the value of the repairs.

A minimum 10-year lease is required, however, and the value of the repairs will be offset against the rental income over a number of years. It is estimated that 3,500 housing units can be renovated as part of this scheme by 2021.

The new “buy and renewal” scheme takes a similar approach but sees councils or housing bodies buy rundown homes and use them for social housing purchases.

The Government will make an initial €25 million available for this initiative in 2017, and Mr Coveney proposes to increase it to €50 million in 2018.

The scheme is particularly aimed at second-hand homes in cities and towns with the hope it will tackle dereliction and improve streetscapes.

While councils and housing agencies have been purchasing homes in recent years, this scheme is designed to encourage the purchase of houses in need of repair, in order to avoid direct competition with private purchasers.

Louth County Council is currently operating a similar scheme in Dundalk and Drogheda.