What developers and placemakers need to understand about urban vacancy

Earlier this week, an academic piece of research by Cian O’Callaghan, Kathleen Stokes and Maedhbh Nic Lochlainn was published, exploring ‘Political and policy responses to urban vacancy, challenges that these policy objectives face, and lessons from the experience of those implemented’. This is a huge body of work and one that we recommend property development teams in Ireland look at – you can download this academic work in full here .

Interestingly, the report aims to reframe the narrative about vacancy, rather than viewing it as a ‘problem’ to be solved, the research demonstrates how vacancy is a function of the planning, property and development systems that exist and these need to be addressed, however, there are three primary obstacles to addressing these, namely (1.) Planning and Regulation: This includes challenges linked to fire, safety, access regulations, conservation, and zoning. (2.) Finance and Markets: This area covers issues like fluctuating land values, construction costs, the timing of future developments, and the role of state incentives. (3.) Governance: This is perhaps the most intricate of all, addressing how various levels of government interact, levies, taxation, and the much-debated Compulsory Purchase Orders (CPOs).

The research is focused on Dublin, Cork and Waterford. Although Dublin reports low vacancy rates, it faces a housing crisis exacerbated by rising property prices and an increasing homeless population. The DCC Housing Observatory reveals that only a fraction of vacant homes can be feasibly reused. Challenges include borrowing restrictions and the complexities of redeveloping Council-owned lands. Cork has witnessed considerable public unrest due to property vacancy. The Cork City Council actively engages in addressing this, but challenges remain, especially in coordinating national regulations with local issues. Interestingly, Waterford is serving as a beacon for urban renewal, using State schemes like the Repair and Lease (RLS) to combat vacancy, with over 140 units brought back into use. 

Reframing the Approach: Recommendations
The report provides a roadmap for developers and policymakers to address the challenges of urban vacancy. Recommendation include: 

1. Establish Integrated Regional ‘Reactivation’ Units: These units would  strategise to bring vacant lands and properties back into use. Collaborating with experts in diverse sectors, from housing to law, they would address the unique challenges faced by different regions in Ireland. Financing for these units might be sourced from the proposed Vacant Homes Tax.
2. Finance the Present to Repair the Future: Financial constraints remain a significant hurdle. Innovative financing mechanisms, such as bonds or collaborations with State investors targeting vacant properties, could provide the required resources to address urban vacancy.
3. Prioritise Communities in Reactivation Strategies: Reactivation shouldn’t solely focus on properties but also on the people around them. Local communities should have a say in vacancy strategies in their areas. By supporting communities, social enterprises, and State bodies to manage vacant sites, we can promote local growth and sustainability.

There are undoubtedly development opportunities hidden within Ireland’s vacancy, however, successful realisation of these opportunities require a different development approach. It is also interesting to note the regional placemaking differences and leveraging of State resources. 

As always, we would be interested to hear about your proposed projects across the regional cities and towns to see how the team at Lotus Investment Group can support the delivery of new homes and places.

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group