Vacant Houses at a time of Urgent Housing Need
According to a recent publication from the Central Statistics Office, Residential Vacancy Based on Metered Electricity Consumption 2024, 70,149 dwellings recorded very low levels of electricity use over the 12 months leading up to Quarter 4 (Q4) 2024, indicating an estimated national vacancy rate of 3.2 per cent. Based on this measure of low electricity consumption, the number of vacant homes decreased from 72,254 (3.3 per cent) in Q4 2023 to 70,149 (3.2 per cent) in Q4 2024. Overall, more than 2,100 dwellings transitioned out of vacancy than entered it during 2024.
Using Electricity Supply Board (ESB) classifications, vacancy rates were notably higher in rural areas at 5.4 per cent, compared with 2.2 per cent in urban areas in Q4 2024. At the local authority level, the highest vacancy rates were recorded in Leitrim (7.8 per cent), Donegal (6.3 per cent), and Mayo (6.0 per cent). In contrast, significantly lower rates were observed in South Dublin (0.9 per cent), Fingal (1.1 per cent), and Kildare (1.4 per cent). Glenties in Donegal had the highest number of vacant dwellings among Local Electoral Areas (LEAs), with 1,615 properties, while Leixlip in Kildare had the lowest, at 71. Of the vacant dwellings that could be matched to a Building Energy Rating (BER), 33 per cent were rated F or G in Q4 2024.
Bringing Vacant Properties back into Use
Introduced in 2017, the Repair and Leasing Scheme was designed to bring vacant properties back into use by offering owners up to €80,000 in funding to repair properties for leasing to local authorities as social housing for terms between five and 25 years. However, the scheme’s target was drastically reduced from the 3,500 units set out in Rebuilding Ireland Strategy to 660 units under Housing for All. The latest data (Q3 2024) from the Department indicates that of the 3,309 applications submitted, just 306 leases were signed in respect of 609 properties, indicating low success rate. Similarly, the Vacant Property Refurbishment Grant, launched in 2022, offers grants of up to €50,000 for vacant properties and €70,000 for derelict properties. However, of the 11,327 applications received by December 2024, only 1,449 grants were issued. This low success rate raises concerns about administrative bottlenecks, delays, and policy effectiveness.
Separately, a study by the Society of Chartered Surveyors Ireland (SCSI) revealed that renovating vacant and derelict properties can be unattractive to many aspiring owner-occupiers and investors due to financial viability. The Vacant Homes Action Plan 2023-2026, published in January 2023, largely restates the policies set out in the Housing for All Strategy, the Rebuilding Ireland Strategy, Our Rural Future, and Town Centre First. As part of these efforts, Budget 2023 introduced a Vacant Homes Tax (VHT) on residential properties occupied for less than 30 days in a 12-month period, initially set at three times the Local Property Tax (LPT) rate. Budget 2024 increased this to five times, and Budget 2025 further raised it to seven times the LPT, which is welcomed.
However, challenges remain, particularly around identifying vacant properties and enforcing compliance. Data from the Revenue Commissioners reveals a stark gap between expectations and actual tax declarations. During the first chargeable period (November 2022 – October 2023), only 5,856 properties were declared vacant, with just 3,468 liable for the tax. Whereas, in the second chargeable period (November 2023 – October 2024), these figures fell further to 3,049 properties declared vacant and only 2,142 liable to pay the tax. These low numbers suggest that many vacant properties remain undeclared, as it relies on property owners to voluntarily self-assess their liability and submit returns. This reliance on self-assessment can make it difficult for authorities to ensure full compliance, presenting obstacles to effectively address vacant properties.
The introduction of the Residential Zoned Land Tax in late 2021 was a welcome step toward activating serviced, zoned land for residential use, and its implementation remains critical. We also welcomed the move to allow landowners flexibility in requesting rezoning to reflect their economic activity, introduced last year. Ensuring the effective implementation of these measures remains crucial, as past experiences indicate that translating policy into practice can be challenging. The introduction of a Site Value Tax, long recommended by Social Justice Ireland and the Commission on Taxation and Welfare, could effectively address this and encourage productive use of land.