The introduction of a Derelict Property Tax was announced in Budget 2026 which will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners. Currently, the Derelict Sites Levy is an annual levy of 7% of the land’s market value. Local authorities will continue to have responsibility for identifying derelict properties. It is intended to introduce legislation providing for the Derelict Property Tax in the Finance Act in 2026. A preliminary register of derelict properties is to be published in 2027 with the tax to be implemented as soon as possible after that.
Where local authorities find that the acquisition of particular vacant and derelict properties is the appropriate mechanism to return them to use, they are enabled by the provisions of the Housing Act and the Derelict Sites Act to acquire them compulsorily. This approach is now supported through the Urban Regeneration and Development Fund (URDF), which has established a €150 million revolving fund specifically for local authorities to acquire vacant or derelict properties (residential and/or commercial), if necessary using their compulsory purchase powers and to carry out any associated works needed to make them more attractive for re-use or sale. The current total of residential and commercial properties approved for inclusion on Local Authority’s Approved Call 3 Programmes is 1,418.
Under Delivering Homes, Building Communities, more will be done to tackle vacancy and dereliction aggressively. The existing grants and schemes will be improved, expanded and further promoted. Their use will ensure that additional homes are provided by renovating and refurbishing existing homes and repurposing commercial and ‘above the shop’ vacant space. As a result, families and individuals can become part of, and contribute to vibrant thriving communities.
These actions will build on existing schemes and programmes, such as CPO Activation Programme (launched in April 2023) that require a proactive and systematic approach by local authorities to identifying vacant and derelict properties and engaging with owners to bring those properties back into use and using their compulsory purchase powers where engagement with owners is not successful.