Pincer move by Government tackles Galway housing crisis
The Government has come up with a twin-pronged approach to tackle the scandal of derelict and vacant buildings – at a time when the rise in property prices and rental costs are forcing so many workers and families out of the market.
The imminent extension of the rent-a-room scheme to include newly-built modular units in the back garden means that potentially so many more owners could avail of the €14,000-a-year tax-free payment – and students, in particular, would have more options on places to live.
On a grander scale perhaps, Minister for Housing James Browne last week announced new targeted measures aimed at unlocking unused spaces in cities, towns and villages by converting vacant and derelict buildings and unused above the shop areas into residential homes.
The new measures will build on the success of a series of anti-vacancy and dereliction initiatives including the Vacant Property Refurbishment Grant which has already brought 5,200 vacant and derelict homes back into use since its launch in July 2022.
But at the same time, the latest figures from the Central Statistics Office show that there are 4,170 vacant homes across Galway city and county.
Galway City Council’s updated Derelict Sites Register includes millions of euro worth of property – including two derelict houses owned by the local authority itself.
An updated register was published by Galway City Council last week – and while not all of the properties on the list have valuations, the estimated total valuation of those that do exceeds €32 million.
The Galway City Tribune reported earlier this month that two properties owned by Galway City Council appear on the list – one in Merlin Park Lane in Doughiska and a farmhouse at Ballindooley Cross in Menlo.
Several prominent businesses appear on the list, as do properties in prominent areas of the city such as Shop Street, Eyre Square and Market Street.
The derelict sites list has properties on streets that would be considered affluent, such as Kingston Road and Dalysfort Road. Properties in Salthill, Ballybane, Shantalla and Knocknacarra all feature too.
The vacant homes figure also comes against the backdrop of the fact that just 144 of those 4,170 homes were self-assessed as liable for the Vacant Homes Tax in 2025.
Indeed there are over 70,000 empty houses across the state, with only 2,361 self-assessed as liable for the VHT – and that led Galway West Deputy Mairéad Farrell to call last week for a reform of the Vacant Homes Tax.
All of this could see seen as a ‘carrot and stick’ approach to the spiralling crisis – to force and incentivise those who own vacant properties (or properties with space to develop) to help address the dearth of rental options.
The speculation is that legislation will be introduced this summer to remove the need for planning permission to build modular structures of up to 45 square metres to the rear of existing homes.
And this would obviously allow for a major expansion of the rent-a-room scheme once these changes are finalised.
We are in a housing crisis, and in reacting to that, we have to pull every lever to unlock housing
The move is being mooted as a way of allowing property owners to earn extra cash while boosting the supply of rental properties on the market, and also giving more credit back to renters, who currently can claim back up to €1,000 from the State in a year.
Under the rent-a-room scheme, tax relief can only be claimed by individual taxpayers, not corporate entities, with an annual cap for letting a room in a primary residence set at €14,000.
Currently, those renting out a self- contained unit that is attached to their property, such as a basement flat or a converted garage, can avail of the tax relief – but that does not apply to units that are not unattached, such as stand-alone modular homes.
The ‘Above the Shop’ grant was the headline proposal in the new targeted measures announced by Minister for Housing James Browne last week.
That will provide funding of up to €135,000 to support bringing above these vacant spaces into residential use, where the commercial element is remaining.
There is also the Targeted Top-Up of the Vacant Property Refurbishment Grant, aligning it with the new grant for conversion of above the shop vacant spaces, with additional funding of up €40,000 where entire former commercial buildings are being converted into two or more residential units.
And the Expert Advice Grant allows for funding of up to €5,000 towards professional advice on conversion of above the shop spaces and of entire former commercial properties to residential units.
Minister Browne acknowledged that people are understandably frustrated ‘when we see properties on our main streets and in our town centres lying idle’.
“We are in a housing crisis, and in reacting to that, we have to pull every lever to unlock housing. We want living towns and cities that are bustling with people and families, who shop, gather and socialise in their local areas,” he said.
“These new measures are designed to bring more of these buildings back into productive use and provide much needed homes for people to live in, in their own communities,” he added.
Among those welcoming the Minister’s announcement was Galway East TD Albert Dolan.
The Fianna Fáil Deputy said that he believed the initiative has strong potential to revitalise towns and villages across the county, where many main streets contain unused upper floors that could be brought back into productive use.
“We all know buildings where the ground floor is active, but the upper floors have been empty for years,” he said.
“At a time when we urgently need more housing and when our rural towns deserve renewed life and footfall, this is exactly the type of practical, targeted support that can make a real difference,” he added.