Vacant Housing Repair and Leasing Initiative – Main Street, Tramore, Co.Waterford.
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Vacant Housing Repair and Leasing Initiative
As our housing crisis deepens with almost 10,000 people homeless in our country and the supply of new housing constrained as demand strengthens, it’s great to see work commence on another unoccupied building in Tramore, Co.Waterford. Griffin Auctioneers played a key role in identifying the dormant building and presented a solution to the current owners.
The property is being renovated and refurbished under the Rebuilding Ireland Action Plan for Housing and Homelessness and will consist of 4 independent residential units. This new scheme ‘the Vacant Housing Repair and Leasing Initiative’ targets the delivery of social housing and also ensures that existing housing stock is used to the maximum degree possible. Waterford City and County Council have piloted and progressed the initiative with Department of Housing Planning Community and Local Government support.
The basis of the scheme is that repair and improvement works to suitable vacant properties are funded to bring them up to the standard for rented accommodation and the cost of the works is then deducted from lease payments over an agreed lease term.
The potential benefits of this initiative include:
- Faster delivery than new-build as no planning process is involved;
- Reduced development risks;
- Compliance with housing goals of affordability, sustainability and inclusion;
- Attractiveness to owners, as the property is renovated and subject to a long-term lease, giving a guaranteed income; and
- Stimulus for smaller builders and associated professional services.
There are a number of requirements in relation to the scheme:
- The property has to be vacant
- There has to be a social housing demand for the property
- The property has to be assessed as being viable to provide accommodation
- The minimum lease term is 10 years and is preferably 20 years
- The lease payments are based on the current market rental rates in the property location, less 20% to cover vacant periods and administration/management
- The scope and cost of the works, and the recoupment of the works cost through the lease payments, are agreed between the owner and Waterford City and County Council
- The initiative is not available for private renting
If you are the owner of a similar profile building which is derelict or unoccupied, get in touch with Michael Griffin for a free property appraisal.