Derelict property prices ‘rising’ because of Croí Cónaithe grants

DEBATE Call for scheme to be extended and VAT rebate considered

There’s been a call for a VAT rebate scheme for those qualifying for grants under the Croí Cónaithe scheme with grants of up to €70,000 available for qualifying properties and applicants.

Cllr TP O’Reilly (FG) raised the matter at the March meeting of Cavan County Council last week.

Elected members heard that sellers of these derelict and vacant properties specific to the scheme have increased the price for first time buyers because the Government grant has been made available.

Cllr O’Reilly said that while it was a very “worthwhile and successful” scheme, and there had been “great uptake”, “a lot of properties are going up in price because of the grant”.

“There needs to be a rebate of some sort or a way to explore that avenue,” he continued, before adding, “there is a need now to see what can be done for these younger couples who are trying to get on the property ladder.

What is happening is very unfair.”

Cllr Sarah O’Reilly (Aontú) then highlighted how couples availing of the Croí Cónaithe grant needed to have the purchased property in their name before they could draw down the funds.

“But what we are seeing happening now in our towns and villages is that many of the derelict buildings that are available under the scheme are either owned by a company or are classed as protected structures,” she said.

“This has to be addressed because the scheme must apply to these properties. This is the only way that we are going to clean up these buildings and it’s also the only way to clean up our town centres.”

Meanwhile, the motion received the support of all council members and it was agreed to write to the Minister for Rural Development, Heather Humphrey, on reviewing the qualifying criteria for the scheme.

The meeting also heard that Croí Cónaithe scheme is due to finish on March 31.

Members subsequently agreed to write to the housing minister as part of a concerted effort to encourage him to extend the scheme for a period of two years.

A maximum grant of €50,000 is available under the scheme for the refurbishment of vacant properties for occupation as a principal private residence and also for properties which will be made available for rent, including the conversion of a property which has not previously been used as residential.

Where the refurbishment costs are expected to exceed €50,000, a top-up grant of up to a maximum of €20,000 is available where the property is confirmed to be derelict. This brings the total grant available for a derelict property up to a maximum of €70,000.

The Government has committed to a review of the Croí Cónaithe Scheme in mid 2024.