BPFI to Confront Major Defects in Donegal Homes Next Week

UPDATE: The Banking and Payments Federation of Ireland (BPFI) is set to meet with Donegal County Council’s (DCC) Defective Concrete Blocks Committee on January 12, 2026, to urgently address critical issues surrounding the government’s Defective Concrete Blocks (DCB) remediation program. This meeting comes amid escalating concerns from homeowners about the effectiveness of the government’s scheme.

Cllr Joy Beard describes this engagement as “critical,” emphasizing the pressing need to confront what she identifies as a fundamental failure at the heart of the remediation initiative. Homeowners affected by defective blocks are currently facing serious challenges, including safety issues, financial strain, and uncertainty regarding property values.

The BPFI chairs a multi-party stakeholder group that includes representatives from Insurance Ireland, Engineers Ireland, the Law Society, and the major lending institutions. Stakeholders are working to identify solutions to pressing concerns about the mortgageability and insurability of homes that have only been partially remediated.

Cllr Beard asserts that the BPFI has made it clear that future mortgageability heavily depends on engineers being able to certify homes post-remediation. However, many engineers, as confirmed by Engineers Ireland, do not consider the IS 465 standard adequate for ensuring homes are restored to a mortgageable condition.

“Families are engaging with the scheme in good faith, but the outcomes fall short of what they were promised,” Cllr Beard stated. “The scheme may facilitate works, but it does not result in homes that can be treated like any other property in the state.”

The upcoming meeting is pivotal as it aims to tackle unresolved financial pressures homeowners are experiencing. Many are forced into significant debt to complete necessary works that the government scheme does not cover, such as foundation replacements. This situation places families under immense strain, even as they comply with the remediation process.

Cllr Beard noted that ongoing market uncertainty persists even after remediation, particularly for homes remediated under options that still leave problematic materials in place. Homeowners are understandably anxious about the long-term market value and sellability of their properties, contributing to a broader decline in confidence within the Donegal property market.

The fragmented governance surrounding the DCB scheme exacerbates these issues. Currently, the Irish Standard is managed under Enterprise, while the remediation scheme is overseen by Housing, creating a disconnect among banks, insurers, engineers, and valuers. Homeowners find themselves navigating a confusing landscape filled with contradictory requirements.

Looking ahead, Cllr Beard plans to directly address these critical issues with the BPFI at the meeting. She is determined to understand why previous proposals for bespoke financial supports for affected homeowners stalled, as this insight is crucial for developing viable solutions.

“The evidence is overwhelming. The current government scheme, underpinned by IS 465, does not restore mortgageable homes,” she concluded. “The Government must act on the findings of the IS 465 review and implement necessary changes to ensure that affected homes are treated equitably with all other properties in the country.”

As this story develops, homeowners and stakeholders will be keenly watching the outcomes of the January 12 meeting, hoping for decisive action that addresses the critical failures in the DCB scheme.