THE HARDWARE JOURNAL’S INTERVIEW WITH MINISTER FOR HOUSING, LOCAL GOVERNMENT AND HERITAGE DARRAGH O’BRIEN, TD.

Jim Copeland, Editor of The Hardware Journal, recently interviewed Minister for Housing, Local Government and Heritage, Darragh O’Brien, TD. on the “Vacant Homes Action Plan” as part of the Government’s “Housing for All” policy. The Minister was very pleased to inform the sector of his and the Department`s support for Hardware Association Ireland`s (HAI) “Empty Homes” initiative and to work with members throughout the country to progress its implementation. Following this interview with the Minister, amongst other agreed follow up actions, the Department is to provide leaflets and Point of Sale signs for distribution to members. HAI in turn is to provide the Minister with further information on its work and support of the very successful “Home Renovation Incentive Scheme”.

Minister can you tell us the background to the Vacant Homes Action Plan?

We all know that the most efficient home to deliver is one that already exists. That is why addressing vacancy and dereliction and maximising the use of our existing housing stock is a primary objective of this Government, and Housing for All contains a specific pathway focusing on this priority area. I want vacant properties in cities, towns and villages across the country to become homes - giving people the opportunity to live and participate in their local communities. The Vacant Homes Action Plan, that I launched in January, outlines the real progress that government is making in addressing vacancy through the introduction of new schemes, supports and incentives but, crucially, it also contains details on further measures that we will bring forward to make sure even more vacant properties are brought back into use. It ensures that the objectives in our Housing for All Plan become a reality.

What are your targets for the plan?

Ultimately, the goal is to bring back as many vacant properties, residential or commercial, into productive use as homes. A key part of the government’s plan to tackle vacancy is the Croí Cónaithe Towns Fund. It includes the Vacant Property Refurbishment Grant - launched last July for eligible vacant properties in towns and villages and was extended to include vacant properties in cities and all rural areas in November. The grant is a scheme to support the sustainable reuse of vacant and derelict properties to become a home. A grant of up to a maximum of ¤30,000 is available for the refurbishment of a vacant property for occupation as a principal private residence. If the property is confirmed as derelict, a top up grant of ¤20,000 is available, bringing the total grant available for a derelict property up to ¤50,000. Properties considered for inclusion must be vacant for two years or more and built before 1993. I’ve had extremely positive feedback on this grant to date with more than 1,200 applications made across the country.

What are the key elements of the plan we need to get right?

Bringing vacant homes and buildings back into use is fundamental to a sustainable housing policy and will bring vibrancy to our local communities. The Government is investing significant money into supporting this objective and I want to see that money making a real difference to our cities, towns villages and rural areas - making them even better places in which to live, work, visit and invest. The Action Plan contains an action to introduce a new programme for the CPO of vacant properties for resale on the open market. My department is currently preparing guidance which will issue to local authorities on the CPO and Compulsory Acquisition of vacant properties for resale on the open market in the coming weeks. This will be a game changer and will help every single local authority across the country, all of whom have experience of vacancy and dereliction, in breathing new life into their areas. As well as that, as part of the launch of the Vacant Homes Action Plan, I also launched a ¤150 million Urban Regeneration Development Fund for local authorities to acquire vacant or derelict properties and sites for re-use or sale. The Fund will then be replenished from the proceeds received from the sale or reuse of a site, allowing a local authority to establish a rolling programme to tackle vacancy and dereliction and revitalise areas all across the country.

How can the hardware sector help in implementing the plan?

I have always said that there is no way the State can address our housing crisis on its own. We need the private sector and public sector working together. The launch of the Vacant Homes Action plan coincided with the start of a six week multi–channel advertising campaign highlighting the supports available to people who wish to buy, lease or sell a vacant property, or convert vacant commercial property into a home. The hardware sector can help the implementation of the plan by spreading awareness of the supports available to people who wish to bring vacant properties back into use. I am really heartened to see the Hardware Association Ireland Empty Homes roadshows take off, I know it’s something there is significant interest in and I will support the Hardware sector as they support us in our endeavours.

As you know, building materials price inflation is a huge concern for our members. Is there anything you can say to them about how this is looking for the year ahead?

The Government is very conscious of the increased costs in construction at present and we have taken steps to address these concerns. A framework is in place which applies to public works contracts and provides for burden sharing around inflationary costs, with the State bearing up to 70% of the additional increase in costs. My Department also facilitates a Construction Sector Group, and this group has appointed a consultant to carry out an analysis on each component of cost of construction of house and apartment development, with a view to reducing cost – including cost of compliance –and increasing standardisation. This analysis will also identify opportunities for cost reduction for consideration by the relevant Government Departments and Industry.

Have you considered any incentives for those who own vacant homes and will renovate them to either live in or rent out, where VAT can be claimed back as per the very successful Home Renovation Incentive Scheme (2013-2018)?

Addressing vacancy requires a varied and holistic response, and the actions identified in Housing for All and in the Action Plan aim to provide that response. Local authorities now have a range of schemes, powers, and incentives at their disposal to address vacancy, while financial incentives are already in place for owners of vacant properties to bring them back into use. As I’ve said, we now have a direct grant available for homeowners and homebuyers to refurbish a home to have as their principle private residence. Then we have other schemes such as Repair and Lease and Buy and Renew which help our local authorities add to their social housing stock. We keep all these schemes under constant review. With regards to VAT or tax these are matters which come under the remit of the Department of Finance. And I will also add that the Sustainable Energy Authority of Ireland (SEAI) grant system is a significant resource which is available to homeowners.

There are planning stumbling blocks in relation to Fire Regulations and Access issues in relation to bringing Vacant Homes back into use. Have you plans to alleviate these issues?

Last month myself and Minister of State, Kieran O’Donnell launched a three-month public consultation on proposed amendments to Building Regulations relating to fire safety. The proposed changes aim to improve fire safety in new buildings and support the re-use of existing buildings by simplifying, clarifying and rationalising fire safety requirements. I would encourage people to have their say on these proposals, so we can make appropriate amendments to our Building regulations to best support the aims of our Vacant Homes Action Plan.