RENOVATION – WHAT NEEDS TO HAPPEN NEXT

Tackling Ireland’s vacant and derelict buildings for residential use holds significant opportunities in addressing our housing supply crisis, our climate change commitments, and our desire to rejuvenate urban and rural communities. Moreover, it aligns with the Government’s Housing for All policy.

It’s perhaps not surprising that the SCSI’s Real Cost of Renovation Report found that financial viability was a key challenge for those wishing to achieve this goal. Homeowners or investors requiring external finance from financial institutions will be unable to release societal, environmental or community benefits if potential projects are clearly in the red.

The introduction of grants – such as the Croí Cónaithe (Towns) Fund and those available from the SEAI – is most welcome. Still, it is clear from the SCSI’s analysis that the currently available incentives and supports, while definitely assisting with the problem, are inadequate to make a meaningful difference for a significant

Lisa Rocca MA MSc MRICS MSCSI

Chair, SCSI Report Steering Group

number of Ireland’s vacant homes or convertible buildings.

Feasibility and funding

One question that other report contributors and I were asked at the Leinster House launch of the Report was how to ensure that limited public funding is put to its absolute best use.

To this end, the Report recommends the introduction of early feasibility grants to consider the unique nature of each renovation project. This will give early access to the expertise needed for financial viability analysis and a regulatory compliance review.

The feasibility study could become a prerequisite for applying for increased grants, rather than a universal increase on projects that don’t warrant them. A more tailored approach to the renovation grants system should also be coupled with funding tranches. The need to wait until the end of the renovation only adds to the financial viability issues such projects face. However, achieving change is not solely down to Government grants. The SCSI will bring this report to meetings with financial institution representatives, to encourage them to review their lending process for renovation projects. We believe that if lenders established a clear set of lending policies and guidance for prospective renovators, this would significantly help with the onerous question of viability. The Report has also recommended installing a specialist ‘on-lender’ type initiative whereby funds are directed through lending partner agencies at preferential rates to support renovation projects, similar to the Strategic Banking Corporation of Ireland.

In addition to financing, the report has identified the complexity of regulatory compliance, which could be overcome with the publication of detailed technical guidance, specifically for vacant and derelict properties, for professionals and local authorities. The SCSI is also preparing a submission on Part B (Fire Safety) as part of the current consultation.

Worth the effort

Out of our 20 case studies, only five projects were both financially viable and regulatorily compliant. Doubling that figure is well within reach, and increasing it further in the medium term could be straightforward with the introduction of quick new measures. Giving a family a home with less carbon impact while rejuvenating communities is undoubtedly worth that effort.