‘For too long, vacancy and dereliction has been treated as an afterthought’ says Louth TD
The Drogheda IndependentThe war against dereliction and rising commercial vacancy rates in Drogheda and Dundalk has been handed a new weapon with both locations added to the ‘Living Cities Initiative’ in Budget 2026.
The Louth towns have joined just six other locations in Ireland where special tax incentives are awarded to encourage regeneration, including Dublin, Cork, Waterford, Limerick, Galway and Kilkenny.
Under the scheme, property owners are incentivised to carry out refurbishment, conversion, or upgrading of existing buildings in historic parts of selected cities or towns, with the aim of bringing derelict or under‐used properties back into use.
In another significant development Revenue will now lead the collection of Derelict Sites Levies, which has previously been overseen by local authorities. The move has been welcomed as it will likely add further pressure to property owners to carry out works on derelict buildings.
It is anticipated that Louth County Council will play a vital role in preparing Special Regeneration Areas for Dundalk and Drogheda.
Nash welcomes 'new weapon' against dereliction
The Budget announcements have been championed by campaigners across Louth, who have long called for a national approach to tackling dereliction in Drogheda and Dundalk.
Louth Labour TD, Ged Nash explained that “years of campaigning have borne fruit in the Budget as the government finally listened to my repeated calls to have Drogheda and Dundalk added to the Living Cities Initiative.”
“This measure will be a new weapon at our disposal in the war against vacancy and dereliction in our two largest towns.”
“I have consistently raised the issue, year after year, putting down amendments to the Finance Bill to make this tax break available to people who want to renovate pre-1913 buildings in urban areas, and bring them back to life.”
Revenue to collect Derelict Sites Levy, adding enforcement pressure
Deputy Nash also welcomed the government’s decision in Budget 2026 to finally transfer responsibility for collecting the Derelict Sites Levy from local authorities to the Revenue Commissioners.
He said the move marks a significant step forward in holding big developers and property owners to account.
Deputy Nash said: “Labour has been calling for years for the Derelict Sites Levy to be collected by Revenue rather than local authorities.
“Big developers and speculators have ignored local councils for too long — but they won’t be able to ignore Revenue. This change is a long overdue recognition that tackling vacancy and dereliction requires serious enforcement.
“For too long, the problem of vacancy and dereliction has been treated as an afterthought. Across every town and city in Ireland, families walk past boarded-up homes and crumbling buildings that could be providing secure housing. By empowering Revenue to collect the levy, Government is finally acknowledging that the system must have teeth.”
Deputy Nash concluded: “With both of these tools finally in our armoury, I look forward to real impact on the ground in Drogheda and Dundalk, breathing new life into our two largest towns.”
McGreehan welcomes 'major opportunity'
Fianna Fail TD for Louth, Erin McGreehan said: “This is a major opportunity for Dundalk and Drogheda.”
She added: “Louth County Council will play a vital role in preparing Special Regeneration Areas for Dundalk and Drogheda. I’ll be working closely with them to ensure this opportunity delivers real benefits for our communities.”
“The initiative is expected to support both economic development and urban renewal, helping to address vacancy, improve housing supply, and support small businesses.”
She added that key changes to the scheme include: extension of the initiative to 2030, expansion of eligibility for residential properties from those built before 1915 to 1975, support for converting “over the shop” premises into residential use and increased relief for enterprises from €200,000 to €300,000, with more flexibility on claiming periods.
Dundalk Chamber welcomes inclusion after decade of lobbying
Meanwhile Dundalk Chamber of Commerce has also welcomed the addition of the north Louth town to the Living Cities Initiative, saying the scheme provides significant tax reliefs to revitalise buildings in town centres through targeted refurbishment and reuse of existing buildings.
Speaking on the announcement, Dundalk Chamber CEO John McGahon said “The Living City initiative was originally established in 2015 and only included Dublin, Galway, Kilkenny, Waterford and Limerick. In every pre-budget submission that the Chamber has submitted, having Dundalk included in the living city initiative has been one of our key priorities. Our current PRO Paddy Malone has been instrumental in drafting, submitting and lobbying Government over the last decade and more about the need for Dundalk to be added to the scheme. It is a huge achievement that Government has finally listened to Dundalk Chamber of Commerce and added Dundalk to the Scheme said John.
Chamber President Hanna McDonnell said: “The Living City Initiative demonstrates how targeted tax incentives can transform older buildings into vibrant homes and commercial spaces. Most importantly, this scheme will get people back living above the shop front, bringing more people and activity into our town centre.”
Dundalk PRO Paddy Malone added: “The Living City Initiative offers a range of generous income tax and capital allowance reliefs to individuals and businesses who undertake qualifying refurbishment or conversion works on properties located within designated Special Regeneration Areas (SRAs).”
He said the scheme is “a proven model for urban regeneration, and it represents an immediate opportunity to reduce tax liabilities, repurpose vacant buildings and drive commercial and residential renewal in Dundalk.”
Butterly and Comyn highlight transformative potential
Louth Fine Gael TD and Regional Spokesperson for the Party, Paula Butterly, has called for more towns across the county such as Dundalk and Drogheda to be included in the Government’s Living Cities Initiative.
Deputy Butterly said she hopes her call “will be taken on board positively” as part of the upcoming National Development Plan announcement.
“Living Cities has the potential to be transformative. If we want real town centre renewal, then these incentives must be rolled out more widely.”
She said these investments demonstrate what can be achieved when strong regional advocacy is matched with Government delivery.
“These are real, tangible wins for Louth, but they must be the beginning, not the end. I am continuing to press for further Urban Regeneration and Development Fund (URDF) allocations so that Drogheda, Dundalk and our smaller towns can access the resources they need to thrive.” The inclusion of Dundalk and Drogheda in the initiative will benefit the county as a whole.
Fianna Fáil Senator Alison Comyn said the news Drogheda will be designated a Regional Centre under the National Planning Framework and included in the Living City Initiative “marks a significant milestone for the town, unlocking new tax incentives and regeneration supports that will allow for the revitalisation of older homes and commercial buildings in Drogheda’s historic centre.”
“I’m absolutely delighted to see Drogheda recognised at this level,” said Senator Comyn. “Being included in the Living City Initiative is not just a policy change — it’s a vote of confidence in Drogheda’s future. This support will enable targeted investment, bring new life to our town centre, and strengthen our case for achieving official city status, which Drogheda both needs and truly deserves.”
Under the revised scheme announced by the Minister for Finance, the Living City Initiative will now apply to properties built before 1975, and also specifically support the conversion of “over the shop” premises into residential accommodation — a long-standing priority in efforts to address the housing shortage and town centre vacancy.
Funded by the Local Democracy Reporting Initiative