Construction activity is set to increase in 2025 with an additional €696 million in capital funding confirmed for housing delivery.

The investment will support over 4,600 new social and affordable homes, including more than 3,700 new builds, as well as continued development of the pipeline for delivery through to 2028.

The funding will be used to progress key construction programmes, including:

• Further new build social and affordable housing delivery in 2025;

• Continue to build the pipeline of projects for delivery in the period 2026-2028;

• Drawdown of grants under the Vacant Property Refurbishment Grant Scheme, bringing vacant units back in to residential use;

• Drawdown of grants by homeowners under the Enhanced Defective Concrete Block Remediation Scheme;

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• Further support for second hand social housing acquisitions by local authorities and specifically Approved Housing Bodies to prevent vulnerable households falling into homelessness; and

• Development contribution waivers to incentivise the activation of increased housing supply.

This brings the total capital allocated to housing by the department to more than €1.4 billion so far this year.

Welcoming the new funding, Minister for Housing, Local Government and Heritage, James Browne stated: "This additional €696 million funding reflects our determination to tackle the housing crisis head-on. It will empower local authorities and housing bodies to accelerate the delivery of new homes, expand access to affordable and social housing, address homelessness, bring vacant and derelict properties back into use, support homeowners affected by defective concrete blocks, and drive new construction in the private sector.

"I have always said that tackling our housing challenges effectively requires a broad, integrated approach rather than relying on any one solution. This is why this funding has been allocated across a range of targeted schemes and initiatives, each designed to address specific aspects of the housing system and contribute to meaningful, long-term progress."

Full details of the breakdown and allocation of funding is due to be published next week.