While Vacant Property Refurbishment Grant drawdowns have increased, the number of completed projects still falls short of government targets.
In this article we cover:
- Latest figures on Vacant Property Grant payments
- Key challenges facing homeowners when drawing down grants
- Role of the Local Authority Purchase and Renovation Scheme (LAPR) in addressing funding barriers
- Potential reforms, including staged payments, to make the scheme more accessible
- Regional trends in applications, approvals and grant payments across Ireland
While the Vacant Property Refurbishment Grant (VPRG) has seen an increase in grant payments in 2024, a significant gap remains between the number of applications, approvals and actual drawdowns.
By the end of December 2024, over €77 million had been paid out for the refurbishment of 1,449 homes under the scheme. However, this figure is far below the government’s revised target of 4,000 homes by 2025.
Reflecting on the latest data, Minister for Housing, James Browne said: “The Vacant Property Refurbishment Grant is delivering real results, with over €77 million already paid out to bring nearly 1,500 homes back into use in towns and villages across the country.
“The rapid increase in grant payments shows the scheme is growing momentum, helping to tackle vacancy and providing much-needed housing.”
To date, Donegal County Council holds the highest number of applications (1,042), approvals (715) and grant payments (93). Cork County and Mayo County Councils have had the second and third highest number of applications respectively.
The Vacant Property Refurbishment Grant scheme, introduced in 2022, aims to revive vacant and derelict properties into permanent homes or rental units, with grants of up to €70,000 available upon completion of works. As of the end of 2024, over 11,300 applications have been received, and 7,700 approvals issued. But the number of drawdowns lags far behind the figures hoped for when the grant was first launched.
Critics point to one key obstacle in the programme: the requirement that homeowners fund the work upfront. Although 1,449 drawdowns were reported at the close of 2024, the scheme’s dependence on post-completion payments is a big hurdle for many homeowners, particularly those lacking the resources to cover refurbishment costs in advance.
In July 2024, in an attempt to help fill the funding gap, the government introduced the Local Authority Purchase and Renovation Scheme (LAPR), which applies to all properties eligible for VPRG.
Under the new LAPR, first-time buyers or Fresh Start applicants struggling to secure funding from commercial lenders can apply to their local authority for a LAPR to buy or renovate a VPRG eligible home. A key feature is the inclusion of a bridging loan. Tied to the VPRG this will boost applicants’ borrowing capacity and project viability. The bridging loan is repayable once the grant is paid out. This approach allows more funding for renovation works than typical bank loans.
However, Minister for Housing James Browne acknowledges the financial strain the current structure places on applicants and is currently considering ways to introduce staged payments, making the VPRG scheme more accessible for lower-income families.
The minister told RTÉ: “The scheme is a really positive one – to bring life back into our towns and cities by bringing existing properties back into use. It’s also good environmentally for urban renewal.”
But added: “It can be difficult for young families on lower incomes to avail of it as it requires everything to be paid upfront.”
