Calls for vacant upper-floors be made available for rental use

Property owners in Killarney town centre are being encouraged to utilise new financial supports to convert underutilised space above commercial premises into residential units.

Councillor Niall Kelleher called on local authority officials to tackle empty upper floors across the urban core, submitting a motion asking: “That Kerry County Council examine the level of vacant and underutilised accommodation over commercial premises in Killarney town centre and outline what measures, grants and other supports could be used to encourage property owners to return these upper floors to residential use, particularly in light of the continuing demand for housing in Killarney.”
In a detailed response, Kerry County Council highlighted its active work through the Town and Village Renewal and Land Activation Section, alongside the Vacant Homes Office, to drive property regeneration. Officials noted that while the established Vacant Property Refurbishment Grant offers up to €50,000 for premises left vacant for two years—increasing to €70,000 if certified derelict—a dedicated Vacant Above the Shop Grant was introduced on 31 March 2026 specifically to convert commercial upper floors into residential space.
Under this dedicated scheme, property owners can access funding of up to €95,000 for the first residential unit created, rising to €115,000 for two units and €135,000 for three or more units. Unlike standard refurbishment grants, grant levels are determined purely by the number of homes delivered rather than dereliction status. To qualify, upper floors must be vacant for at least two years, the structure must pre-date 2008, and the ground-floor commercial element must be retained. An additional Expert Advice Grant of up to €5,000 is also accessible prior to submitting a formal application.
Council officials outlined the progress and promotion of the financial supports, stating: "As the Vacant Above the Shop Grant was only introduced earlier this year, the scheme remains at an early stage of rollout and uptake is expected to increase as awareness grows. The strong level of interest shown by property owners in the Vacant Property Refurbishment Grant demonstrates the effectiveness of targeted financial supports in encouraging the reactivation of vacant properties."
The local authority added that following a public information workshop held in Killarney on 25 May, further engagement initiatives will take place. Property owners seeking guidance are encouraged to visit kerrycoco.ie/vacant-property-grants or contact the Vacant Homes Office directly at vacanthomes@kerrycoco.ie.