Frustration over delays and price inflation tainting VPRG support

The Vacant Property Refurbishment Grant (VPRG) has been hailed as a game-changer in recycling older housing stock since it was introduced by the government in 2022.

The scheme is proving particularly popular in rural Ireland, where many older cottages, bungalows and town centre properties have fallen into vacancy and dereliction. Although previously ruled out by those seeking to buy a home, the grant has put a new shine on these old properties.

However, as the VPRG scheme grows in popularity, issues with delays in drawing down grant payments and suggestions that the €50,000 available (rising to €70,000 where the property is derelict) is driving up the price of older properties, has led to criticism over whether the initiative is achieving its intended aim.

Figures released by the Department of Housing show over 11,000 applications were received under the VPRG scheme in 2024. However, less than 1,500 grants have been drawn down in that 12-month period, despite over 7,760 grant approvals being issued.

In total, just over 18,000 applications have been made to the scheme since it was launched in July 2022.

Housing Minister James Browne has indicated a willingness to consider altering the scheme to allow for staged payments but insists the VPRG scheme is delivering real results.

“A review of the Vacant Property Refurbishment Grant was undertaken in 2024 which included the matter of staged payments. The review has now been completed and is under consideration,” he told the Dáil last month.

“Over €77 million has already been paid out to bring nearly 1,500 homes back into use in towns and villages across the country.

“The rapid increase in grant payments shows the scheme is growing momentum, helping to tackle vacancy and providing much-needed housing,” he said.

SEAI grant support

Mick McCormack is town regeneration officer with Wexford County Council, which has paid out €3m in VPRG grants to 41 approved applicants since the scheme was first rolled out.

“VPRG is huge for us and so far, we’ve had a total of 300 applications with pretty much a 50:50 split between rural and town centre properties,” he explains.

“Anecdotally, people are turning to older homes as a housing option as there is almost €100,000 available which is a good head start when renovating these properties between the maximum VPRG grant (€70,000 when the property is derelict) and €26,000 through SEAI grants.

“It will probably take another six to 12 months to see the impact of it but there is no catch with VPRG. It is a very simple grant that is there to help people to bring these properties up to a standard where they can be lived in or rented out.

“Once approved, applicants have 13 months to carry out the works, albeit extensions are granted as we accept the difficulties and delays in getting builders.

“I know there is frustration with the delay in draw down of grants, and the Government is looking at the potential for interim payments, but there is a lot of legal work involved, which can take time.

“There is a secondary charge applied to the property and we are dependent on solicitors to carry out the necessary paperwork which can take time and is frustrating for those who are grant-approved.

“This secondary charge means that if a person decides to sell the property in the first five years, they must repay 100% of the grant, this reduces to 75% for five to ten years, after which no repayment is payable.”

The VPRG is not the only grant offered to homeowners looking to revitalise older properties. Funding is available through the Sustainable Energy Authority of Ireland (SEAI) which is designed to improve the energy efficiency of homes. It offers homeowners up to a maximum of €26,000 for a range of works.

SEAI grants fall into two categories; One Stop Shop which is administered through approved builders and must achieve a minimum BER rating of B2 upon completion of the works and the Better Energy Homes Scheme, which cover attics and wall insulation, heating controls upgrade, solar, thermal and heat pump systems and the installation of Solar PV panels.

However, there is growing concern that construction prices are being inflated where grants have been approved.

Approved builders

Hazel Leahy is weeks away from moving into the 100-year-old cottage in Co Westmeath that she has spent the past six months renovating.

Having initially looked into VPRG and SEAI grants, Hazel took the decision to proceed without State support, and believes she saved money as a result.

“I knew buying the house last August [2024] that it required a full renovation as it had been vacant for a number of years,” she says.

“I looked into all the grants, both the Vacant Property and SEAI grants and I found the application process for both very cumbersome.

“I filled out all the paperwork and sent it off to the county council and SEAI and I was approved for both, with a response coming through very quickly. But of the list of approved builders I received, none of them had any availability for at least six months. It was the same situation with the SEAI list of approved companies through the One Stop Shop system.

When I started pricing the work with those builders on the approved lists, the first question I was asked was if I had a grant

“My understanding was I had to go with someone off these lists yet those I did contact told me they wouldn’t get to me until 2025 at the earliest. As I had already sold my house, I needed to get into the cottage as soon as possible.

“When I started pricing the work with those builders on the approved lists, the first question I was asked was if I had a grant.

“I felt extortionate numbers were being added to the quotes when I said I was grant-approved. I came to the decision that I could project manage the work myself and deal directly with individual tradespeople instead of using one builder.”

Hazel did her own research in the local area and by dealing directly with both tradespeople and suppliers, she had full control over the project and her budget.

“I started asking around in the community and found local tradespeople and once I had one person in, it took off from there. The heating, the plumbing, the floors, were all done by local people and I ended up finding my electrician on tradesmen.ie, he was a man who had just started out on his own and I gave him a chance. I am hoping to move in within the next month or so, the only remaining job is my kitchen.

“I found that by doing the research and the legwork myself everyone was open to negotiation which meant I was able to control the price of the works. I ordered all the materials direct from the suppliers myself, and I was therefore able to control the project overall.

“I don’t think I would have saved money by availing of the grants. I did have the advantage of having the proceeds of the sale of a house to finance the project. I know those who do go for the grants have to come up with the money up front and then wait for the grant to be paid out.

“If you’re willing to do the research in terms of what work needs doing and who is best placed to do it for you, it can be done. It took six months for the purchase of my cottage to go through so I used that time to research house restoration for older buildings online to learn what I could and couldn’t do.

“In my opinon, these grants are having the same effect as the first-time house buyers grant which pushed up the price of houses.

“I think some approved builders are increasing the price of jobs which means people aren’t saving money in the long run.”