The government's decision to abandon plans for a cap on the value of homes eligible for the State's vacant property grant is a setback for affordability, according to Social Democrats housing spokesperson Rory Hearne.

Deputy Hearne said: "The government has failed to cap the value of homes that are eligible for the vacant property grant at €650,000 – a household income of at least €162,500 is needed to afford a home which costs that much.

"Fianna Fáil and Fine Gael claim tackling vacancy and dereliction is a priority, yet the coalition is using this grant as a slush fund for property investors and landlords rather than an initiative to increase the provision of affordable homes.

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"It is shocking that the government has decided not to introduce a cap on the value of homes eligible for the vacant home grant, allowing it to be used by landlords and property investors to do up properties to be rented out at sky-high rates.

"Information released to me from the Department of Housing revealed that 28% of vacant property grants approved to date were for landlords for properties to rent — the fact that these are classed as 'affordable housing' delivery in the government housing figures is outrageous.

"The newly proposed vacant property grant changes will allocate up to €140,000 per unit — this coincides with new rental measures which will allow rates to be reset to market rent every six years.

"These changes make clear that this government favours investor landlords over ordinary people trying to buy or rent an affordable home.

"Local authorities only get €11,000 to do up a vacant council home, yet private landlords will be able to get up to that €140,000 figure — this is a retrograde step in housing policy.

"The State has finite resources which should be targeted towards those who need it most, not landlords and investors — I urge the Minister to reconsider these changes."