- Chartered Surveyors express disappointment that only limited measures to tackle dereliction of larger buildings included in Budget ‘27
- SCSI had called for package of tax measures to bring large vacant buildings back into use for housing
- However it welcomed the decision to proceed with the Derelict Property Tax at 7% and the commitment to a preliminary dereliction registers from September 2027
- SCSI also welcomed affordability measures such as an increase in Help to Buy and the Rental Tax Credit
- Cut in Capital Gains Tax welcome but disappointment development land excluded
Tuesday, October 6th, 2026:
The Society of Chartered Surveyors Ireland has expressed disappointment that only limited measures were introduced in Budget ’27 to tackle the blight of derelict larger buildings across Ireland.The SCSI says that in the midst of a housing supply crisis, bringing large, vacant and derelict buildings back into use for housing should be a priority for the Government.
The President of the SCSI, Tomás Kelly, said 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 not seen any targeted measures.
“In our pre-budget submission we pointed out that viability remains the key constraint for renovation projects and that the current level of grants does not materially alter that, particularly for larger, more complex projects. That viability gap is compounded by financing issues and regulatory compliance requirements.”
“The reduction in the standard rate of Capital Gains Tax from 33% to 31% is a welcome step and broadly aligns with the SCSI’s call for measures to improve agricultural land mobility and encourage investment. The decision to proceed with the Derelict Property Tax at 7%, supported by preliminary dereliction registers from September 2027, is also welcome.”
“However, the SCSI had specifically sought targeted, time-limited CGT relief to bring vacant and derelict buildings back into productive use. The exclusion of development land from the reduction is also disappointing, given the Society’s longstanding calls for tax measures that support land activation and housing delivery. Overall, the Budget falls short of providing the targeted package of incentives needed to make the refurbishment of larger vacant and derelict buildings financially viable.”
Affordability
The SCSI welcomed the €5,000 increase in the amount first-time buyers can claim back in tax under the Help-to-Buy scheme, which will help address the affordability challenges faced by first-time buyers across the country, especially when saving towards their 10% Loan-to-Value borrowing requirement.
The SCSI also welcomed the €2,000 increase from €14,000 to €16,000 in the amount homeowners can earn from renting out a room or garden unit under the Rent-a-Room scheme and the increase in the renter’s tax credit, which went up €150 for a single person and €300 for a couple.
“The Society welcomes the extension of Rent-a-Room Relief to qualifying detached auxiliary dwellings, which should support the delivery of additional accommodation through the more efficient use of existing residential sites and properties.”
“Affordability remains a real challenge for first-time buyers and for renters, so the introduction of these measures is welcome. It has been clear for some time that support for buyers is not fully aligned with current market prices, limiting its effectiveness, particularly in popular commuter towns. We had called on the Government to introduce indexation of support scheme thresholds to construction cost inflation to ensure their alignment over time, but unfortunately the Government decided not to do this.”
Viability
The SCSI said it would have liked to have seen the introduction of measures to tackle rising house delivery costs to aid housing supply.
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 said that while the additional infrastructure investment is welcome, the Government could go further in reducing housing costs and delays by extending development levy and utility connection charge waivers, while ensuring that An Coimisiún Pleanála has the resources required to accelerate decisions and approvals.