- Chartered Surveyors call for package of tax measures to tackle property dereliction
- SCSI says measures are needed to bring larger, more complex vacant buildings back into use for housing
- SCSI also wants measures introduced to address rising costs of housebuilding and costly delays
- SCSI says tax rates on rental income should be reduced for smaller landlords who offer long-term leases
Friday, 25 September 2026: The Society of Chartered Surveyors Ireland is calling for the introduction of a package of tax measures to tackle the scourge of dereliction and to return more complex vacant buildings into use for housing.
The SCSI says such measures are required because renovators of multi-unit or mixed-use buildings face a range of challenges including viability and financing as well as regulatory and planning requirements.
The SCSI says its last ‘Real Cost of Renovation Report’ demonstrated that viability remains the key constraint for renovation projects and that current grant levels do not materially alter viability in most cases, particularly for larger or more complex projects. It says this viability gap is compounded by financing issues and regulatory compliance requirements.
The President of the SCSI Tomás Kelly says that while existing supports have helped bring individual properties back into use, larger buildings, which have the potential to house thousands of people all over the country, have been left behind.
“Since its launch in 2022, the Vacant Property Refurbishment Grant has attracted over 18,800 applications with 14,400 being approved and 6,300 grants representing almost €350m, issued to date on completion. This demonstrates the effectiveness of financial support in activating supply. However, these interventions have primarily supported individual properties and are not sufficient to unlock larger and more complex multi-unit or mixed-use buildings”
“Access to finance represents a structural barrier for renovators of these buildings according to SCSI research 1, with 8 out of 10 surveyors indicating that finance is more difficult to obtain for these projects compared to new-build properties.”
“Regulatory and planning requirements also act as a constraint on delivery. Building regulations, particularly fire safety, accessibility and structural requirements, are often designed for new builds and can be disproportionate when applied to existing structures, increasing compliance costs.”
“Despite a significant stock of vacant and underutilised buildings in prime locations, these requirements often make conversions or ‘above the shop’ units unviable. That’s why we want to see targeted tax incentives introduced to unlock these types of properties.”
Among other measures the SCSI is calling for
– Time-limited Capital Gains Tax (CGT) relief to incentivise the sale or activation of vacant buildings.
– Tax relief on rental income from refurbished vacant properties for a defined period.
– Mortgage interest relief for loans related to multi-unit refurbishment projects.
– A reduction in the 7.5% stamp duty rate on vacant commercial properties and the application of a 9% VAT rate on the sale of refurbished residential units, particularly multi-unit developments
– The establishment of a single national register of vacant and derelict properties
“Bringing vacant and underutilised property back into use represents one of the most immediate and cost-effective opportunities to increase housing supply. By closing the viability gap, incentivising owners and investors and strengthening delivery capacity, the State will be able to unlock this significant source of supply and support the delivery of housing in a timely, sustainable and economically efficient manner” Kelly said.
Housing Costs and Delays
A recent report by the Central Bank found that the time it takes to deliver a new house from planning to completion has doubled from two years to four years over the last decade. It also highlighted the rising costs of housing delivery.
The SCSI says delays and high cost often go hand in hand. SCSI research indicates that construction costs account for just over half of total delivery costs nationally, with the remaining costs made up of land, levies, finance and other charges. This means that many of the key cost drivers are affected by Government policies.
The SCSI’s most recent ‘Real Cost of Housing Delivery Report’ highlighted the role development levies and utility connection charges play as material cost components, leading to higher costs. For example, the SCSI estimates their removal could reduce delivery costs by approximately €17,500 per unit in the Greater Dublin Area.
Kelly says the Government could cut costs and delays by extending waivers and allocating more resources to local authorities and An Coimisiún Pleanála.
“We are calling for the extension of development levy waivers (including s.48 contributions and utility connection charges) until housing output consistently meets national targets as well as the introduction of a multi-annual Exchequer-funded replacement mechanism to fund local infrastructure in lieu of levies.”
“Our research has identified delays in planning approvals and infrastructure connections as key contributors to increased costs and slower delivery. We want an increase in Exchequer funding to local authorities and An Coimisiún Pleanála to enable them to accelerate decision-making and approvals. Also, the allocation of dedicated funding to improve early engagement and capacity within relevant utility providers, particularly water infrastructure.”
Viability & Affordability
The SCSI says that while improving viability is a key aspect on the supply side of the equation, addressing affordability concerns on the demand side is another.
Kelly says the SCSI believes that affordability supports are not fully aligned with current market prices, limiting their effectiveness for many first-time buyers, particularly in higher-cost regions.
The SCSI is calling on the Government to
– Provide funding to increase price ceilings under the First Home Scheme to reflect prevailing market values.
– Introduce indexation of scheme thresholds to construction cost inflation to ensure continued relevance over time.
– Maintain Help to Buy funding on a multi-annual basis to provide certainty for purchasers and developers.
– Expand Croí Cónaithe, the scheme that provides financial support for the construction of apartments to owner occupiers, to additional regional growth centres
The Rental Market
The private residential rental sector is integral to Ireland’s housing system, serving 18% of total households (330k households).
However, challenges such as rising rents, landlords exiting the market, and inadequate supply, highlights the dire need for a comprehensive policy framework that balances the interests of tenants, landlords, and the broader housing market.
The SCSI is calling for reduced tax rates on rental income for smaller landlords offering long-term leases; and increased tax deductions and reliefs, including for improvements and Residential Tenancies Board dispute costs. It believes these measures are particularly important for maintaining rental supply in our regional towns.