Vacant property grants: Aid will be extended to 2030 despite Coalition row about caps

Cabinet to consider new plan after Fine Gael and Fianna Fáil resolve dispute about limits on the value of eligible properties 

'Irish Examiner Property' this month featured a cottage in Ballyvourney / Baile Mhúirne in Co Cork which shows the potential of once-vacant homes. See links at foot of this article.  

Plans to extend the vacant property refurbishment grant will be discussed by the Cabinet this week following a disagreement between Fianna Fáil and Fine Gael on limiting eligible properties.

Fine Gael blocked a Cabinet memo on the matter last week and insisted that it was pulled due to caps limiting the value of a property that would be eligible for a grant.

It was reported that a cap of €650,000 would be put in place for those seeking to avail of the €50,000 vacant property grant in the greater Dublin area, meaning that homebuyers buying more expensive vacant properties would be excluded.

'Proposed cap withdrawn' 

A lesser cap of €500,000 was expected to be put in place for other areas across the country.

Following pushback from Fine Gael, the Irish Examiner understands the idea of implementing a cap has been removed, with the memo now expected to go back to the Cabinet on Tuesday.

As part of the plans to be progressed, the vacant property grant will be extended to 2030.

The 'Irish Examiner' understands that the idea of a property value cap on refurb grants has been removed, with the memo now expected to go back to the Cabinet on Tuesday. Stock image

'Living above the shop'

It is also expected that a new grant for vacant 'above the shop' units will also be introduced allowing unused upper floor space above commercial units to be converted into residential accommodation.

The grant will be open to properties in cities, towns, and villages, and will see applicants receive up to €95,000 in situations where one residential unit will be created.

This will be increased by €20,000 when a second residential unit is made available, and another €20,000 will be paid for three or more units.

Applicants will also be able to avail of grants worth €5,000 to secure professional advice on conversion requirements, bringing the total maximum grant to €140,000.

In order for an applicant to be eligible for the grant, the upper floors must have been vacant for two years or longer.

Converting commercial units to residential

Additional supports will also be introduced to support conversions of full former commercial unit where one more than one residential unit can be created.

The Irish Examiner understands this will see a top-up of €40,000 for a vacant property and €70,000 for a derelict property. 

This will be paid on top of the existing vacant property grant of €50,000. 

This will bring maximum support to €110,000 for eligible projects or up to €115,000 when the professional advice grant is included.

Since its launch, more than 4,300 vacant property grants have been paid at a total cost to the State of €230m.

Local authorities currently receive approximately 390 applications per month, with an 80% approval rate.

Crackdown on dereliction 

The move comes as part of the Government’s ongoing crackdown on the number of vacant and derelict properties across the country.

As part of Budget 2026, then finance minister Paschal Donohoe confirmed that a new derelict property tax will be introduced to replace the derelict sites levy.

The new tax will be collected by the Revenue Commissioners. It will continue to charge a rate of at least 7% of the market value of the property.

It is expected that legislation will be introduced in 2026 and will come into effect from 2027.