This is Derelict Ireland by anois

This is Derelict Ireland.

Rest. Play. Work.

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Imagine... a city that invites everyone to Rest Play Work. Transforming, reusing and repurposing unused sites and buildings will make urban Ireland a better place for all of us to live, learn, love, share, create and contribute. Here we explore urban dereliction, dispelling myths that contribute to the continuation of this long-lasting blight hampering Irish villages, towns and cities.

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What is dereliction? Dereliction is a description of a property that has a negative impact on its neighbourhood. A property that is an eyesore, that has contaminants, likely to detract from the amenity, character or appearance of a neighbourhood.1

2009

2019

A derelict property could be ruinous, in a dangerous condition, neglected, decaying, unsightly, or contain litter, rubbish, debris or waste. It is a broad definition. Dereliction is primarily caused by a lack of care and maintenance frequently compounded by long term vacancy.2 Yet, dereliction does not mean the property has been abandoned, as some derelict properties can be regularly used . Unfortunately, dereliction also has a contagion character. If left unaddressed, it can quickly spread within the neighbouring urban environment.

2009

4 images sourced from Google maps

2019

These photos illustrate how two homes have become uninhabitable in just 10 years. Take a moment to consider these houses were once family homes and should still be.

1. This description of dereliction is taken from the Dereliction Act 1990 2. In addition to derelict properties, Ireland has a significant vacancy problem too, which is outside the scope of this report. 3

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We are calling on Cork City Council to be the first city in Ireland to eradicate dereliction Dereliction is a totally unnecessary blight that is sucking the economic potential out of all our cities, towns and villages, making core urban areas unliveable, eating away at communities, eroding our sense of place and jeopardising the viability of local businesses and traders. Dereliction is such an epidemic in Ireland that many of us have become normalised to decaying and collapsing buildings. Sadly, this has led to an acceptance mindset of ‘that’s the way things are’. But why should dereliction define the fabric of our urban spaces, and why should any of us have to experience it on a daily basis?

We have a housing crisis, massive shortages of available housing stock, skyrocketing rents and unaffordable homes, yet we have thousands of potential homes lying derelict. Why have we allowed it to be socially, financially and legally acceptable for the minority to destroy our cities through disrespect and neglect, while our neighbours die on our streets or continuously suffer for lack of an affordable and secure place they can truly call home. Dereliction is a key barrier to the sustainable densification and growth plans for our city centres. Especially when we have such short supply of homes, play and workspaces in our urban cores. For Irish urban areas to survive and thrive we need to eradicate dereliction. 4

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Cork City is our home Moving to back to Ireland in late 2018, we were shocked by the level of the homelessness3 and dereliction in Ireland. We decided to investigate dereliction, concentrating our efforts on Cork City. After almost two years of immersive research4, we went public in June 2020, sharing images of derelict properties on Twitter. This ongoing thread of 300+ properties has been viewed millions of times and built a community of interest. This report is part of the RestPlayWork series by anois.

Cork City Council currently have 95 properties listed on its Derelict Register. However, this does not reflect the true scale of dereliction in the city given that to date we have identified over 340 derelict properties, all within 2km of the city centre ‘island’. It should be noted that dereliction is not necessarily worse in Cork City than anywhere else in Ireland. We are confident that these findings are representive of the situation across most Irish towns and cities.

3. With the clear case for Housing First and Right to Home policies we decided to target our expertise on dereliction. 4. Research analysis and synthesis is based on a range of methods including reviewing legislation, policies and government documents, mapping and recording sites, data mining, media analysis and a range of meetings with different stakeholders. 5

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10 Deadly Myths of Dereliction 2

There’s no profit Owners have no incentives in dereliction

Planning system is holding progress back

Building regs. are stopping renovations

The Constitution protects private property rights

Taxing Nothing can be done until dereliction is all the owner is that’s possible identified

There is no way to ensure the dereliction levy is paid

CPOs are not Progress will not a realistic happen without solution new legislation

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Myth 1

Busted

There’s no profit in dereliction

A modest derelict home can bring in €20k a year through speculation

“Dereliction is not a function of poverty but a function of wealth. Because only the truly wealthy landlord can afford to sit on the asset” David McWIlliams

We calculated that an owner of a modest derelict property in Cork City can earn €20k a year by just sitting on it. For example, here are two homes from the Derelict Register that have sold for prices much higher than their original valuation. Proving that substantial profit that can be made from simply leaving a property derelict. Given the sale price for commercial properties is not publicly available it is not possible to ascertain their potential profit. However, later in this report we present one case study of a large commercial derelict 'site' that has been very profitable over a decade of decay and dereliction.

€90k profit over 5 years

€100k profit over 4 years 7

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Myth 2

Busted

Owners have no incentives

Not only is there a booming property market there is also 7 different funding schemes available

A booming housing market alone would logically be considered the biggest incentive for owners of derelict properties to sell up. Between 2013-2018 house prices rose by 50%, continued to rise since 2018 and are predicted to rise by further 4% in 2021. Yet very few derelict properties have sold since 2013.

For owners who wish to invest in their properties in order to sell, rent or live in them, 7 funding schemes5 are available: • Architectural Conservation Area Funding • Built Heritage Investment Scheme • Long-term Leasing Scheme • Repair and Lease Scheme

Likewise, rents have more than doubled • Buy and Renew Scheme since 2010 and have continued to rise even • Living City Initiative through the COVID19 pandemic, regardless • SEAI grants of the widespread unemployment and college closures. Yet there are still hundreds of long-term derelict properties.

9% of derelict properties have being sold since 2013

5. The eligibility for these schemes vary depending on the property’s location and suitability.

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Myth 3

Busted

Planning More owners have let their is holding planning permissions lapse progress back than owners being refused planning Planning permission is not a prerequisite to bringing a derelict property back into use. However, it is likely that some sort of planning will be required. Even if it’s just for window and door replacements, particularly within an Architectural Conservation Areas. Preparing and submitting planning applications require a relatively small amount of time and money. Having open planning permission on a derelict property can be considered as showing intent to do something. Our research shows that the majority of derelict properties don’t have open planning.

24%

5% 5%

of derelict properties currently have open planning permission

of derelict properties have been refused planning permission

73%

35%

of properties with planning permission have let it lapse

of properties with planning are serial planners, i.e. repeatedly gaining permission

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Myth 4

Busted

Building regs. are stopping renovations

Building regs. should not be a barrier for the majority of derelict properties

Public perception of building regulations is frequently inaccurate. This is causing a lot of confusion, thus putting many people off renovating an old, derelict or long-term vacant property.

Likewise, building regulations are only applicable in 3 circumstances:

In 2018, the Department of Housing released a 'Bringing Back Homes - Manual for the Reuse of Existing Buildings'. This clearly states that old buildings do not need to meet energy efficiency regulations if it is not technically, functionally and economically possible.

• if there is a change of use

• to the new additions in a property such as extensions, electrics, plumbing • if structural integrity changes are made We acknowledge that challenges can occur for large-scale developments, multi-occupancy buildings, above shop conversions and for protected structures. Further clarity is required for these circumstances, especially in relation to fire safety. However, for the majority of the derelict properties in Cork City building regulations are not a barrier to renovating them to a habitable standard.

72% of derelict properties can be brought back into use while easily adhering to building regs. 10

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Myth 5

Busted

The Constitution Private property rights protects private can be limited by social property rights justice and common good The constitution is there to ensures our rights to social justice and the common good are enacted at all times, crisis or not. This is for the benefit of all citizens, not just land and property owners. In the days before COVID19 we were repeatedly told an eviction moratorium was not constitutional. We have since seen that this is simply not true. With a massive housing shortage, a homeless crisis, and escalating house prices and rents, we need to ensure that our constitutional rights are enacted at all times.

Section 43 of the Irish Constitution 43.2.1 The State recognises, however, that the exercise of the rights mentioned in the foregoing provisions of this Article ought, in civil society, to be regulated by the principles of social justice 43.2.2 The State, accordingly, may as occasion requires delimit by law the exercise of the said rights with a view to reconciling their exercise with the exigencies of the common good 11

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74% of current/previous owners can be publicly identified

32%

Myth 6

Busted

Nothing can be done until the owner is identified

A property can go on the Derelict Register without identifying the owner

Identifying the owner of properties is challenging in Ireland and sometimes nigh on impossible. Only 90% of the total Irish landmass is in the Land Registry. This is even lower in Cork at 86%, because property sales have only had to be legally registered from 2011 onwards. Luckily, the Derelict Act accounts for this challenge, so local authorities only need to undertake ‘reasonable effort’ to identify the owner.

The assumption taken here is that reasonable effort includes: • placing notices on the building and in newspapers requesting the owner to get in contact • searching in land register, records of deeds and planning applications • asking neighbours, previous owners etc. if they know the owner • placing a time limit on staff hours spent liaising between receivers and solicitor

of derelict properties are in the land registry 12

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Myth 7

Busted

Taxing dereliction is all that’s possible

Owners of derelict properties can be prosecuted

Statutory legal obligations to remove dereliction can be given to owners. This process starts with the issuing of a Section 11 Notice. This notice must specify what measures are necessary to remove dereliction and by what date it needs to be completed. To speed up the process these measures are exempt from the planning process. Cork City have not issued any Section 11 Notices to date.

If a property owner does not comply with the Section 11 Notice they can be prosecuted. This could result in a summary conviction with a fine of up to €2.5k or imprisonment for up to 6 months. In extreme cases a conviction or indictment could lead to a fine of up to €55k and an imprisonment up to 2 years. In addition, to prosecution under the Dereliction Act, local authorities can also prosecute owners of dangerous structures and neglected protected structures. For some buildings, all three prosecution routes should be pursued.

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There are 4 steps a local authority can take to ensure a much higher collection rate than is currently happening: 1. Invoice all properties on the Dereliction Register as it is impossible to collect the levy otherwise. 2. Only suspend the derelict site levy for extreme circumstances of undue hardship such as recipients of the Fair Deal Scheme and recent bereavements (e.g. 6 month timeframe). 3. Strictly apply the late payment monthly interest fine of 1.25% for all non-payments after 2 months. 4. Place all unpaid invoices and fines as a charge against the property. This means that when a property is sold the seller has a legal obligation to ensure that all outstanding levies are paid to the council before the sale is completed.

Myth 8

Busted

There is no way to ensure the dereliction levy is paid

The levy can be applied as a charge on the property itself

The Dereliction Levy means that the owner of a property on the Dereliction Registry can and should be charged a yearly 7% levy of its market value (this was 3% until 2020). In addition, the Minister for Housing can increase this levy for any individual property up to a maximum of 10%.

If a local authority is in dialogue with a derelict property owner who has plans and means to renovate or develop a derelict property, the local authority can decide to place the Levy into a bond. This bond acts as a guarantee that is secured with a bank or insurance company, who ensures that all Derelict Levies due on the property will be paid if the planned scheme is not carried out within 5 years.

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Cork City Cork City Council established a new policy in 2019 that will see them placing a CPO on properties that have been derelict for more than 2 years, and where the owner is not engaging and where no planning or sale related activity has taken place. Cork City Council are currently in the process of placing CPO’s on 17 derelict properties.

Limerick Limerick Council have acquired 100 derelict properties in the last 2 years.

Louth Between 2015 and 2018, Louth Council acquired 92 derelict properties which it turned back into homes for use for social housing.

Myth 9

Busted

CPOs are not a realistic solution

CPOs can be a quick and practical step towards addressing dereliction

Local authorities can apply Compulsory Purchase Orders (CPOs)6 to properties in order to remove dereliction themselves. This process can be completed within just 4 months if the property is already on the Dereliction Register. It does not require the local authority to identify the owner. The owner has 12 months after the CPO is completed to apply for compensation. The compensation for a CPO is based on the value of the property recorded in the Dereliction Register minus any unpaid levies, fines and charges for work carried out. When the CPOs are complete the Council have a legal obligation to put plans in place to remove dereliction on these properties, given they will still be on the Dereliction Register.

6. A CPO means a Local Authority can take ownership land or property without the consent of the owner but must provide financial compensation to the owner. 15

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Busted

Myth 10

98%

72%

are derelict for longer than 2 years

are missing from the Dereliction Registry

of Dereliction Levy was collected

are under CPO

Current legislation Progress will not happen has potential to bring significant benefits, without new if enforced legislation The current lack of enforcement of the Dereliction Act is causing many problems, being particularly detrimental to social sustainability and the wellbeing of citizens. If the Act was enforced it would kickstart a reversal of the dereliction epidemic, revitalise the city centre and make a strong statement that local authorities are not willing to accept this level of irresponsibility, putting the needs of the many over the few.

have been given legal obligations to remove dereliction 16

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Dereliction First Dereliction has been a problem in Ireland since the foundation of the state. Many Irish Governments have tried to provide local authorities with a legislative framework to remove dereliction by passing numerous Acts, in 1940, 1961 and finally with the current Derelict Sites Act 1990. Any law is only as good as it’s enforcement. The Dereliction Act ‘is worded so broadly that it “empowered local authorities to do so much, and also excused them for doing very little”. 2 There is little doubt that tackling dereliction is not straight forward. It requires committed resources, multidisciplinary skills, collaboration, time and a process rooted in trust, transparency, integrity and respect for the city and its people.

Cork City Council could raise a total of €2.1m annually on 95 properties alone. This was calculated based on the 7% levy being applied to the properties currently on the Dereliction Registry.7 Imagine if Cork City Council increased the Dereliction Register to include all the derelict properties within the city boundaries. Especially considering we have identified at least 340 within just 2km of the city centre island.8 In 2019, Cork City Council had a collection rate of 30%. If the same collection rate applied in 2020 this would have brought in €627k, instead the collection rate drastically dropped to just 6% with only €140k collected by mid-2020.

“One of the earliest and most enduring concerns of Irish local government has been to minimise and control, in the public interest, the impact of ruin and dilapidation on our cities, towns and villages. Derelict sites were to be cleared and rendered aesthetically acceptable not because of their immediate danger to health or safety but because they detracted from our enjoyment, and that of tourists, of our cities.” 1998 Pádraig Flynn Minister for the Environment

To put this €2.1m into perspective, Cork City Council had a budget deficit of €2.5m in 2020, which We believe Cork City Council should show proactive caused them to increase the Land Property Tax by leadership, maximising the impact of the tools and 7.5% to raise an additional €1.58m. measures available, in particular through: • CPO • Dereliction Levies • Legal obligations to remove dereliction 7. In addition to the Dereliction Levy, Cork City Council could potentially collect a further €2.1m through the Vacant Site Levy for just 18 sites.

8. In reality, we believe there are closer to 600 derelict properties and vacant sites within 2km of the Cork City centre island, we have only included 340 in this study. Please note all data in this report is presented as an approximation and is based on publicly available data. A list of all the derelict properties analysed will be shared with Cork City Council. 17

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“A city’s conserved historic core can differentiate that city from competing locations, branding it nationally and internationally, thus helping to attract investment and talented people.” The World Bank

There is no doubt that built heritage gets a raw deal in Ireland and as a result there is a significant loss of economic potential. Take Cork City for example, blessed with a unique, rich and arguably priceless built heritage that has evolved with a large variety of styles and design eras. However, sadly much of this is undervalued and at risk of been lost forever. This is due to a lack of understanding of its significance, a lack of strategy, a lack of maintenance and acceptance of dereliction. All avoidable reasons. 100 years ago, Cork City lost a significant proportion of its built heritage in the Burning of Cork. Today we are facing a similar scale of destruction entirely of our own making. Many of Cork City’s historic buildings are crumbing. Between 2019 and 2020 alone, there were 90 incidents of dangerous buildings in the city.

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Why are we destroying the uniqueness of Irish towns & cities?

82% of derelict properties are estimated to be over 100 years old

47% of derelict properties are in Architectural Conservation Areas

25% of derelict properties are in the National Inventory of Architectural Heritage

11% of derelict properties are protected structures

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Case study: Trinity Quarter The Trinity Quarter is a 1.46 acre ‘site’ in Cork City Centre that has laid empty for well over a decade but is not on the Derelict Register or the Vacant Site Register. Located within the South Parish Architecture Conservation Area, it contains the former Brooks Haughton’s builders’ yard and a number of historically derelict buildings, some of architectural and heritage significance. The site includes 2 Georgian properties, which combined with 2 others make up the remnants of what was a former terrace built in 1825. Sadly, the 2 on this site have been boarded up for a long time and are now in a serious state of decay. If the Cork City Council had placed the Trinity Quarter on the derelict list and applied the levy, they would have received a total €2.99m over the last 5 years alone. If the Dereliction Levy went unpaid and was placed as a charge on the properties Cork City Council would have received €1.35 m when Dairygold sold the site in 2019.

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Case study: Trinity Quarter The ‘site’ and derelict buildings were valued at €20m in 2006 and sold by Wolseley to Dairygold (Alchemy Properties) for €15m in 2008. Planning permission was granted for an office block on the site in 2010 and again in 2015 yet there is no sign that work ever started. One reason for this may stem from the commercial property strategy of Dairygold, as inferred in their 2018 annual report, which is to maximise an asset’s value (through re-zoning and obtaining planning permission) before divesting the asset.

UCC initially set out to invest a further €106m into this new Trinity Quarter, with the help of a state investment of €25m. This will require a new planning application to fulfil UCC's plans to host the university’s Business School on this site, initially scheduled for opening at the start of the academic year in 2022 or 2023.

However, with no formal planning application submitted and with the impacts of COVID19 on third level education’s revenue streams, it seems unlikely that this new Trinity Quarter will be realised within the next 5 years.

UCC bought the site for €17.25m in 2019 resulting in Dairygold making a profit of over €2m. Dairygold got a 13.3% return on this investment, as they were able to afford to leave this large city centre site lay derelict, to the detriment of everyone else.

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Conclusion Dereliction should not define the fabric of our urban areas and needs to be eradicated. Our unhealthy relationship with property in Ireland has led to this dereliction epidemic. Our investigation dispels 10 of the more common myths around the lack of progress in tackling dereliction. We can end dereliction and our economy needs this to happen. Reusing derelict properties and sites will make our urban environments a better place to rest, play and work for everyone.

We wish to acknowledge the wonderful support we’ve had since we went public last June. It’s really given us the energy to keep going. A sincere thank you.

Who are we?

Over to you Cork..... Dublin..... Galway..... Limerick..... Waterford..........

We are Jude & Frank. We are the returning diaspora, Jude left Ireland in the ‘00s, Frank in the ‘90s. While living in Amsterdam, and looking for a fresh start, we visited Cork city and fell in love with the beauty and uniqueness of the city centre, and in particular the super friendly Corkonians. We run anois and have an extensive background in research, development and delivery of multistakeholder sustainability projects of international excellence, placing us in an ideal place to undertake this in-depth and independent selffunded investigation into dereliction while also offering unbiased insight. Cork city is now our home. We will continue to do our part to maximise its enormous potential for the benefit of everyone. Jude Sherry BDes MSc Dr. Frank O’Connor BTech PGCert MTech PhD March 2021

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Rest. Play. Work.

Connect with us Email us hello@anois.org Follow @anoisagency @judesherry @frank_oconnor on Twitter

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