The Government is moving to overhaul the Repair and Lease Scheme in an effort to bring more vacant properties back into use as social housing, with a particular focus on smaller homes.
Housing Minister James Browne is seeking Cabinet approval for changes that would direct local authorities to prioritise studio and one-bedroom units under the scheme.
The proposals are aimed at addressing two issues at the same time: Ireland’s shortage of social housing and the large number of vacant properties that could potentially be brought back into use.
How the Repair and Lease Scheme works
The Repair and Lease Scheme provides an interest-free loan of up to €80,000 per unit to eligible owners of vacant properties to fund repairs or conversion work needed to bring the properties up to rental standard.
Once renovated, the properties are leased to a local authority or an Approved Housing Body for use as social housing.
The funding is then repaid through an offset against the lease payments.
The Housing Agency has previously described the scheme as a way of increasing social housing supply while also tackling vacancy and helping to revitalise towns and villages.
Government wants more one-bedroom homes
Under the proposed changes, local authorities would be directed to give greater priority to studio and one-bedroom homes.
The move follows a Programme for Government commitment relating to one-bedroom housing.
The focus also reflects how the scheme has increasingly been used to bring smaller vacant properties and former commercial premises back into residential use.
According to the figures reported ahead of the Cabinet discussion, 58% of properties delivered through the scheme in 2025 were one-bedroom units.
Many of the projects involve vacant commercial buildings in central locations being converted into small residential developments.
Scheme can bring vacant buildings back into use
One advantage of the Repair and Lease approach is that property owners undertake the renovation work rather than relying entirely on local authority construction teams.
Typical renovation projects take between nine and 18 months, according to the information reported ahead of the Cabinet decision.
The Government argues that this can allow local authority building teams to concentrate on other housing projects while privately owned vacant properties are brought back into the social housing system.
The Housing Agency has also identified addressing vacancy and delivering additional social housing in areas of greatest need as core objectives of the scheme.
Changes proposed for residential properties
The Government is also seeking to widen access to the scheme for owners of existing residential properties.
At present, applications involving existing residential properties are restricted to owners who require capital funding.
The restriction was intended, among other things, to prevent investment firms from using the scheme, but officials now believe the rule has proved difficult to apply in practice.
The proposed change would remove that restriction.
However, Government sources do not expect the change to result in a major increase in participation by large investment groups holding vacant properties.
Legal costs could also be covered
Another proposed change would allow funding for certain legal costs incurred by local authorities.
The aim is to help councils meet the costs involved in putting leases in place and bringing additional properties into the scheme.
The Government argues that the changes will allow more properties to be identified, repaired and leased for social housing.
Why the scheme matters for vacant homes
Ireland has a substantial stock of vacant residential and commercial properties, but bringing those buildings back into use can involve significant repair, planning and legal costs.
The Repair and Lease Scheme is designed to address part of that problem by providing financial support for refurbishment while securing the properties for social housing.
The approach is different from building a new social housing development from scratch.
Instead, it seeks to make use of properties that already exist but are not currently providing housing.
That can be particularly relevant in town and city centres, where vacant commercial buildings can sometimes be converted into smaller residential units.
Focus on smaller homes
The proposed emphasis on studios and one-bedroom properties is significant because smaller homes can be particularly suitable for certain households seeking social housing.
The Government’s decision to prioritise these units would also build on the type of properties already being delivered through the scheme.
However, the change does not mean that larger homes will no longer be supported. Rather, the proposed direction would place greater emphasis on studios and one-bedroom units.
What happens next?
The proposed changes require Cabinet approval before they can be implemented.
If approved, local authorities would receive new direction on the type of properties to prioritise under the scheme, while the Government would also proceed with changes concerning residential properties and legal costs.
The overhaul is part of a wider effort to increase the use of existing buildings to address Ireland’s housing shortage.
For the scheme to make a significant contribution, however, vacant properties still need to be identified, owners need to participate and the required renovation work needs to be completed.
The Government’s proposals therefore aim to make the existing Repair and Lease mechanism more flexible while concentrating delivery on smaller homes.
For Ireland’s housing market, the key question will be how many additional vacant properties can ultimately be brought back into use as social housing.
Related M10news coverage
The proposed changes come as Ireland continues to expand its social and affordable housing supply. M10news tracks housing construction and rental-market developments through its Ireland Rental Market Tracker.
M10news has also examined Europe’sEurope’s affordable housing models affordable housing models and how different housing systems use public housing, cost-rental and other models to increase access to homes.
