CIH Ireland policy update - Q1 2025

As we enter the second calendar quarter of 2025, CIH Ireland takes a brief look back at housing policy developments from the start of the year, which saw positive steps regarding funding allocation for new social housing construction, affordable and cost rental units, grants for the refurbishment of vacant and derelict properties, as well as an overhaul of the planning system.

Funding 

Minister James Browne announced a €436 million allocation for social housing, aimed at addressing housing needs across Ireland. This includes €111 million for the construction of over 1,300 new homes across 82 projects, with an expected total cost of €517 million.

The new-builds, spread across multiple regions, aim to deliver 575 homes by the end of 2025. A further €325 million will fund the Social Housing Second-Hand Acquisitions Programme, which focusses on acquiring homes for priority groups such as tenants in situ, older people, and those exiting homelessness. The funding aims to address critical housing needs, with a specific emphasis on securing homes for vulnerable populations. Local authorities will receive direct allocations to target these priority areas effectively.

€168 million has been allocated to support the development of 849 new cost rental and affordable purchase homes across Ireland. Of this, €156 million will fund 686 new cost rental homes, offering affordable rents 25–33 per cent below market rates in cities such as Cork, Galway, and Fingal. Additionally, over €11.8 million will finance 163 new affordable purchase homes, helping first-time buyers and those starting anew to purchase homes at below-market prices. 

Vacant Homes Action Plan

The latest progress report on the Vacant Homes Action Plan shows significant strides in reducing vacancy and revitalizing communities. Over 7,700 applications have been approved for the Vacant Property Refurbishment Grant, with more than 1,400 grants paid out. Additionally, over 1,200 properties have been secured through the Urban Regeneration and Development Fund, expected to yield around 4,800 homes by 2030. 

The government's efforts also include removing planning barriers for converting vacant commercial spaces into homes, leading to the potential creation of 2,700 new residences. The report highlights that these actions have reduced the national vacancy rate to its lowest level since 2013, with continued momentum expected through policies like the Town Centre First initiative and the Vacant Homes Tax.

Planning and Development Act 

Ministers James Browne and John Cummins unveiled the Implementation Plan for the Planning and Development Act 2024, a major reform to Ireland's planning system. The act aims to enhance clarity, consistency and efficiency in planning processes, to facilitate the delivery of more homes. Key elements include the creation of An Coimisiún Pleanála, the introduction of statutory timelines for planning consents, and improvements to judicial review processes.

The act will be implemented in phases, starting with the establishment of the new planning body in the second quarter of 2025. Other provisions include better alignment of planning strategies, the creation of Urban Development Zones and stronger measures against the abuse of the planning system. These reforms are expected to improve the planning environment, supporting both public and private sector housing initiatives.

February commencement data 

As of February 2025, a total of 1,017 homes were commenced in Ireland, contributing to a 79 per cent increase in housing activity compared to the previous 12 months, with 64,175 homes started from March 2024 to February 2025. Of these new homes, 21 per cent were scheme dwellings, 61 per cent were apartments, and 18 per cent were one-off units.

A significant portion of the construction took place in Dublin, with 47 per cent of homes being commenced across its four local authorities, and 44 per cent specifically in Dublin City. The top three local authorities for new housing commencements were Dublin City (451 homes), Limerick (109) and Donegal (89).

Interim Remediation Scheme 

The Housing Agency acknowledged that the Interim Remediation Scheme (IRS) for addressing fire safety defects in apartments and duplexes is currently not fully compliant with national and EU procurement law, which may delay the process by several months. However, the scheme will continue as planned in all other aspects, including the scope of works and funding levels.

The agency is revising the IRS in collaboration with relevant state agencies to ensure full compliance with procurement laws, based on legal advice that confirms the need for compliance, even though the Owners’ Management Companies (OMCs) are the contracting parties. The process update comes as part of a wider effort to prepare for the launch of a full statutory scheme later this year.

The IRS, which applies to buildings with fire safety defects built between 1991 and 2013, is designed to fund emergency remediation works, with the full remedial works to follow under a statutory scheme. Over 195 applications, covering approximately 18,670 apartments, have been made, with an estimated total cost of over €2 billion to remediate up to 100,000 affected apartments nationwide. 

• CIH Ireland is hosting a member-exclusive workshop on the essentials of OMC Management in Ireland at Cluid Housing, Dublin, on 29 April - find out more

Homelessness statistics 

The January 2025 Monthly Homelessness Report reveals that 10,683 adults were accessing emergency accommodation in Ireland between January 20-26, with the highest numbers in Dublin (7,497 individuals). The report shows a high proportion of single adults, with 66 per cent being male.

Additionally, there was a notable difference in accommodation types, with 67 per cent of individuals using private emergency accommodation (PEA). The report highlights the demographics, with a significant number of individuals in the 25–44 age group (54 per cent) and a marked number of non-Irish nationals (26.3 per cent).

The report also mentions a positive trend in exits from emergency accommodation, with 922 adults transitioning to tenancies in Q4 2024, reflecting a 23.9 per cent increase compared with the same period in 2023.