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Government backs €2.5bn scheme to address defects to up to 100k apartments

Apartments Scheme
/ 18th January 2023 /
George Morahan

The government has approved a €2.5bn scheme to address fire safety, structural safety and water ingress defects found in apartments and duplexes build over a 22-year period

Cabinet agreed to draft legislation to underpin the remediation scheme, which is aimed at protecting the safety and welfare of those living in apartments or duplexes with such defects that occurred during construction between 1991 and 2013.

The Department of Housing, Local Government and Heritage said a 'whole building' approach would be taken to ensure common areas and shared spaces are also remediated where required to the relevant standard.

The Working Group to Examine Defects in Housing estimated last July that 50-80% of apartments and duplexes built during the period may be affected by one or more defects.

In all, it is estimated that between 62,500 and 100,000 apartments/duplexes are affected, and that the average cost of remediation will be approximately €25,000 per unit, equating to a potential cost to the Exchequer of €1.5bn to €2.5bn.

In Association with

It is expected that the Housing Agency will administrate the scheme, and that owners' management companies will be funded to carry out the necessary works, with specific limitations or exemptions on certain commercial owners.

The government has also decided that works related to fire safety defects entered into or commenced from today will form part of the scheme. Such works would need to be agreed with local authority fire services, and further details will provided in due course.

Remediation costs already incurred or levied by homeowners will also be indemnified by government within the scope and defined parameters of the scheme.

Minister for Housing Darragh O'Brien said "the details and mechanics of the scheme" will be worked out as the legislation is drafted, adding that the Department of Housing would do so as quickly as possible.

€2.5bn scheme
Apartments
Minister for Housing Darragh O'Brien. (Pic: Sam Boal/RollingNews.ie)

"We know that there are significant legacy defects in a large number of apartments and duplexes and as a result, many owners of apartments and duplexes are facing difficult financial situations - alongside the personal stress that is caused - when defects arise in their buildings," O'Brien said.

"The forthcoming scheme will help protect the safety and welfare of those currently living in apartments or duplexes with fire safety, structural safety and water ingress defects."

"We also need to continue strengthening our building control system so that similar issues don’t arise in the future. I remain committed to establishing an independent building standards regulator with effective powers of inspection and enforcement and an appropriate suite of sanctions."

Minister O'Brien intends that any prospective regulator would have sufficient scope and effective powers of inspection and enforcement in cases of non-compliance in respect of buildings, as outlined in the Housing for All plan.

In addition, the Department has established an advisory group to develop a Code of Practice with guidance for relevant professionals on fire safety and buildings, including guidance on interim safety measures. 

Only defects that are attributable to defective design, defective or faulty workmanship, defective materials (or any combination of these) and were in contravention of the relevant Parts of the Building Regulations applicable at the time of construction will be eligible for inclusion in the scheme.  

Any defects that originate from inadequate maintenance, poor management etc. will not be included within the scope of the scheme.

(Pic: Getty Images/Sam Boal/RollingNews.ie)

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