Renovate, retrofit, restore, remodel, refurbish. And rejoice when it’s all over. The process can be anything from stressful to seamless, depending on time and budgetary pressures. As a nation we are obsessed, from those who prefer to sit back in comfort and watch shows like Room to Improve and Great House Revival, to the brave souls who want to get their hands dirty and sign up for a DIY course at The Common Knowledge Centre in Co Clare, buy a derelict wreck and dive in.
With skyrocketing house prices, record-breaking rents, and increasing construction costs affecting housing supply, refurbishing existing building stock is a practical and sustainable solution, whether it’s the house you’re already living in or the tumbledown pile of stones you’re about to hand over your life savings for.
To encourage renovation, the Government provides financial supports including the Vacant Property Refurbishment Grant, and the Sustainable Energy Authority of Ireland (SEAI) three energy upgrade grants.
According to the Build 2024 report published by the Department of Public Expenditure, NDP Delivery and Reform last June, 17,601 homes were upgraded to a BER rating of B2 or above in 2023—a 108 per cent increase compared to 2022. Older properties often require significant upgrades to meet modern energy standards, but with the grants and savings on utility bills, if you’re planning on staying in your home long-term, it’s well worth the effort.
July 2024 saw the launch of the Local Authority Purchase and Renovation Loan (LAPR) for first-time buyers, and ‘fresh start applicants’, who have been unable to get funding from commercial lenders. (Fresh start applicants include people whose relationships have ended and have no financial interest in the family home, or those who have gone through bankruptcy or insolvency.) The government-backed loan has two parts: a fixed-rate mortgage loan and a variable-rate bridging loan for the amount approved by the Vacant Property Refurbishment Grant.
However, the financial viability of renovating vacant or derelict homes remains a key consideration before taking on such a big endeavour. The Society of Chartered Surveyors Ireland (SCSI) 2023 report, Real Cost of Renovation, examined 20 case studies and found that only four out of 13 residential renovations were financially viable without grants. A renovation’s financial feasibility is typically assessed by comparing the market value of the property post-renovation to its initial value plus renovation costs.
There are also practical, financial and regulatory hurdles facing property owners. Planning permission is required for many renovation projects, adding layers of complexity. High upfront costs can be a barrier, as financial institutions assess renovation lending on a case-by-case basis due to varying levels of risk. The cost of essential renovation components, from structural work to utility connections, continues to climb, exacerbated by a shortage of skilled tradespeople that can lead to project delays and increased costs.
While challenges remain, the combination of grants, financing options, and energy efficiency incentives can still make renovation a viable, and rewarding solution in today’s challenging property market.
