Bringing boarded-up Dublin City Council houses back into use is expected to cost almost €50,000 per house next year, with Government contributing a maximum of just €11,000 each, according to new council budget figures.
The total cost of refurbishing the council’s vacant and derelict homes next year is expected to run to €28 million, with the council bearing almost 80 per cent of the costs, primarily using borrowed money.
Council chief executive Richard Shakespeare said it was “not realistic” to continue borrowing at this level “year on year”.
Councillors will on Monday night be asked to approve a budget of €1.48 billion for running the city next year, an increase of about €140 million on this year and the highest ever cost to run the city.
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The vast bulk of this extra money – more than €100 million – will be swallowed up by additional housing costs, with the housing budget increasing from €637.6 million in 2024 to €738 million next year.
General housing maintenance costs were continuously rising, according to Mr Shakespeare’s report for the budget meeting. “This increase is due to an increasingly ageing housing stock that requires more attention, and inflationary pressures,” he said.
Next year the council expects to spend €71.5 million on maintenance, up from €63.7 million this year.
Separately, the council has a programme to bring “voids” – houses or flats that have been vacated by tenants but are not in a fit condition to be re-let – back into use.
“Government support for the funding of the refurbishment of vacant housing units has reduced over recent years,” Mr Shakespeare said.
“The Department of Housing, Local Government and Heritage fund void refurbishments up to a maximum of €11,000 a unit and for 2025 it is expected that this level of funding for Dublin City Council would equate to a contribution rate of 22 per cent.
“Dublin City Council carries a considerable level of borrowing to bring vacant social homes (voids) back into use, along with borrowing for other housing maintenance programmes.”
It was expected the council would bear costs of €21.9 million for tackling voids next year, with the department contributing €6.1 million. “It is not realistic to assume the City Council can continue to borrow at this level year on year.”
A spokesman for the Department of Housing said the management and maintenance of housing were “matters for each individual local authority” which should make “adequate budgetary provision” for this work.
The voids programme emphasised “minimum refurbishment works” to comply with housing regulations, he said. “Where a local authority chooses to do works over and above those that are necessary to comply with the rental standards it can impact re-let times and result in additional costs for the local authority.”
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