Government announces housing plan in Ireland, 300,000 new homes, Help to Buy scheme extended, tax on empty homes

The government has announced a housing plan in Ireland. The plan acknowledges that homelessness is the biggest social problem facing the country. The report says that the proportion of single people who are homeless is increasing..

It will provide €100 million in dedicated capital funding to purchase second-hand properties to support the exit of families who have been living in emergency accommodation for the longest time without homes. It will also develop a Child and Family Action Plan that aims to provide 2,000 rental homes through the Housing First programme.

There is a promise to provide more suitable homes and choice for older people in private housing. There will also be continued investment in high-quality commuter accommodation.

Under the new housing plan, the First Homes scheme, which provides government equity to first-time home buyers, will be expanded. While the scheme currently applies to new builds, it is now being expanded to help first-time buyers who want to buy and renovate abandoned or long-vacant properties. 

The Help to Buy scheme, which allows up to €30,000 in tax credits, has been extended until the end of 2030. The scheme places a strong emphasis on bringing vacant and abandoned properties back into use.

 The new housing scheme, called 'Delivering Homes, Building Communities', will build at least 300,000 new homes by 2030. The government's housing scheme will deliver 72,000 of the 300,000 social homes. The scheme will bring 20,000 homes back into use through the Vacant Property Refurbishment Grant. 

It says that 300,000 is not an upper limit, but a realistic projection of what can be achieved by effectively working together the public and private sectors.

The Housing Plan also offers a national planning statement for housing to provide clarity and consistency within the planning system in relation to the protection of the Irish language.

The scheme aims to support the private sector to build more homes by providing more zoned and serviced land, reducing planning, legal and regulatory delays, and increasing investment in public infrastructure. It plans to build 90,000 starter homes under this scheme.

The plan will also include a new equity capital of €400 million to help small construction companies build homes.

The aim is to convert vacant shops and premises into homes, with funding of up to €140,000 per property. The funding will include expert advice on the best ways to convert these spaces into residential units.

The ‘Above the Shop Top-Up Grant’ could also be expanded to include properties owned by small companies. In total, the scheme hopes to bring 20,000 homes back into use through the Vacant Property Renewal Grant.

The new plan also states that the Revenue Commissioners will establish, administer and collect a new abandoned property tax.

The Living City Initiative has been extended to 2030 and will include properties in Athlone, Drogheda, Dundalk, Letterkenny and Sligo.  The scheme aims to deliver more one- and four-bedroom homes. 

However the scheme, which was launched this morning, has already been branded a wet farce by opposition parties, accusing the government of re-introducing old ideas that have failed to stem the rise in homelessness