Government approves establishment of defects scheme for apartments and duplexes

Government approval to draft legislation to support the remediation of apartments and duplexes with fire safety, structural safety and water ingress defects, has been granted to Minister for Housing, Darragh O’Brien.

It will apply to apartments and duplexes constructed between 1991 and 2013.

The legislation will provide a statutory basis for the establishment of a remediation scheme aimed at protecting the safety and welfare of those living in apartments or duplexes with such defects that occurred during construction.

A ‘whole building’ approach will be taken, ensuring common areas and shared spaces are also remediated where required to the relevant standard. It’s envisaged that the Housing Agency will play a central role in the administration of the scheme and that Owners’ Management Companies will be funded to carry out the necessary remediation works, with specific limitations or exemptions on certain commercial owners.

The scale of defects in apartments and duplexes is significant. The Working Group to Examine Defects in Housing that reported to Minister O’Brien in July 2022, estimated that between 50% and 80% of apartments and duplexes (or associated common areas) constructed between 1991 and 2013, may be affected by one or more fire safety, structural safety or water ingress defects.

This equates to between 62,500 and 100,000 apartments/duplexes. The average cost of remediation is approximately €25,000 per unit, which means the scheme could have a potential cost to the Exchequer of between €1.5 billion and €2.5 billion.

In order to ensure that important life-safety works are not paused, the Government has also decided that remediation works related to fire safety defects, entered into or commenced from today, will form part of the remediation scheme, subject to terms and conditions.

Such works will need to be agreed with local authority Fire Services and the details of this process will be worked out as a priority and provided in due course. Government have approved the principle of allowing remediation costs already incurred or levied to be covered under the legacy defects scheme, within the scope and defined parameters of said scheme.

Speaking following the Government meeting, Minister O’Brien said:

"I have listened to calls from homeowner representative bodies and I am glad to report that Government have approved the principle of allowing remediation costs already incurred or levied to be covered under the legacy defects scheme, within the scope and defined parameters of said scheme. The details and mechanics of this will be worked out as the legislation is drafted."

"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."