Members of the Former Housing Commission have backed calls by Clare Fine Gael TD Joe Cooney for increased funding under the Vacant Property Refurbishment Grant scheme to address the impact of rising construction costs on the programme’s effectiveness.
Addressing the Oireachtas Committee on Housing today, Deputy Cooney warned that escalating material costs are threatening the scheme’s ability to incentivise the reuse and retrofitting of vacant properties across rural Ireland.
The Vacant Property Refurbishment Grant, launched in 2022, provides financial support of up to €50,000 for vacant property renovations and up to €70,000 for derelict properties.
“The scheme has demonstrated significant success, bringing 2,000 homes back into use by March 2025, with three times that number approved for grant funding,” Deputy Cooney explained. “However, as someone who was involved in the construction sector for decades, I am concerned about its continued success going forward.”
Deputy Cooney highlighted the substantial increases in construction material costs since the scheme’s inception.
He continued, “Concrete prices have risen by 21%, window costs have increased by 25%, and rockwool insulation prices have doubled since 2022. These escalating costs are diminishing the practical value of the current grant amounts and may discourage property owners from participating in the programme.”
In the Oireachtas, the Clare TD asked attending members of the Former Housing Commission if they would support his proposal for increasing grant values to reflect current market conditions, particularly given the significant number of derelict properties in rural areas and town centres that could be restored through the programme.
Chairperson of the Former Housing Commission, John O’Connor said he would support such an increase, while Commission member Michael O’Flynn suggested: “The grant should be related to the scale of the work that needs to be done. You have to have some basis of cost versus finished product.”
Mr. O’Flynn warned that construction inflation would continue to increase.
“Construction costs inflation is only going one direction,” he noted. “People keep thinking and talking about materials are going to come down and extraordinary things are going to happen. They’re not. We just have to become more efficient in what we do and how we do it.”
Deputy Cooney also proposed implementing a staged payment system for grants, rather than the current completion-based model, which was also positively received by the members of the commission.
He said this approach would improve cash flow management for participants, particularly those using the grant to build first homes for themselves or their children.