Funds provided to local authorities for social houses to fall by €90m next year

Sinn Féin spokesperson on housing Eoin Ó Broin is critical of the funding drop compared to 2023, saying that it is 'unacceptable' considering the record levels of homelessness across the State.
Picture: Gareth Chaney/Collins

There’s set to be a €90m drop in social housing funds provided to local authorities next year, with around 330 less homes likely to be built as a result.

According to the Government’s Budget 2024 estimates, there will be €1.33bn allocated to local authorities to build social housing.

This compares to 1.42bn that had previously been allocated to the Department of Housing in 2023, including a €240m carryover from 2022, due to the Department not spending its entire allocation.

However, the Department of Housing says that until the revised estimates are published later this year – which set out the final funding allocation for each department under Budget 2024 – current allocations may vary.

Sinn Féin’s housing spokesperson Eoin Ó Broin is critical of the funding drop compared to 2023, saying that it is “unacceptable” considering the record levels of homelessness across the State.

“At a time when homelessness has reached record heights, any cut to Local Authority funding is totally unacceptable,” Mr Ó Broin said.

“The Government's social housing targets are too low and they are not meeting those. We need the funding and targets to be increased and the red tape slowing delivery down cut away to allow our councils to increase and accelerate the delivery of social housing.

“With respect to the €90m cut, I am urging the minister for housing to have this reversed before the end of the year. Councils need more funding for social housing not less.”

Asked about the cut, a spokesperson for the Department of Housing said that the final figures will be confirmed next month.

“In respect of the individual 2024 allocations, the Revised Estimates Volume for the Public Service (REV) will be published in mid-December and will set out the final detail on the 2024 subhead allocations for the Housing programmes, taking into account both the programme level allocations announced in Budget 2024 and additions that may arise,” the spokesperson said.

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It comes as Finance Minister Michael McGrath said that the Government will consider making changes to the vacant property refurbishment scheme. 

The Irish Examiner yesterday reported there were just 21 grants drawn down since the scheme came into effect last July.

So far, there have been 4,640 applications to the scheme, with 1,975 being approved, but the vast majority are yet to be drawn down.

In particular, there have been no drawdowns under the scheme in either Cork county or city.

The scheme iallows people to access up to €50,000 in grants to renovate a vacant property, and up to €70,000 to restore a derelict property. However, the scheme is paid in arrears, so work must first be completed before it can be drawn down.

Speaking in response to Sinn Féin’s Pearse Doherty during leaders’ questions, Mr McGrath said that Housing Minister Darragh O’Brien would be open to improving the scheme.

“Of course, the minister will be open to any opportunities to improve the operation of the scheme,” Mr McGrath said.

“The minister will be engaging with the local authorities and indeed with applicants to get the feedback and to make sure that any issues that have arisen in terms of the operation of the scheme are being addressed over the period ahead.”

Mr McGrath said that the scheme has already been approved, with changes to the vacancy and dereliction eligibility date as well as increasing the funding that can be drawn down.