Hardware Association calls for incentives to bring empty homes into the market

In its pre-budget submission, the group says measures to help to renovate ‘above the shop’ residential units should be considered

HAI said stamp duty should be waived on the sale of empty homes for two years and that the number of vacant home officers should be increased.

Hardware Association Ireland (HAI) has called for targeted measures to bring empty homes back into the housing market, including incentives to renovate ‘above the shop’ residential units, in order to meet housing targets.

In its pre-budget submission, HAI said stamp duty should be waived on the sale of empty homes for two years and that the number of vacant home officers should be increased in order to bring more homes on stream.

The Government currently offers the vacant homes grant which provides €50,000 to renovate a vacant home.

HAI also said that above the shop residential units are “a very large and distinct segment” of the empty homes sector, citing a study from 2022 which showed that vacancy rates in commercial property in Ireland are 80% for upper floors.

“It has huge potential and needs targeted incentives to reach that potential,” said HAI. 

“Many of these, especially those with three or more storeys, could be converted into two/three/four homes.

“From a cost effectiveness and a practical reason, they need the grants to be based on the number of units rather than on the number per applicant. 

Current incentives are not attractive enough to encourage uptake.”

HAI said the capital gains tax on these premises should be lifted for three years for owners who decide to sell on and they should be included in the vacant homes grant.

HAI also said Vat for first-time buyers should be reduced to 4.8%, which it said would reduce the average cost of delivery of a house by over €35,000.

“This measure would significantly narrow the gap between the amount that could be borrowed and the cost of delivery.

“In many cases at present the Vat on a new home exceeds the grant amount in the help-to-buy scheme.”