Rural towns and villages are dying because property owners are clinging onto vacant homes in the hope that prices will increase, a Government report has found.

Interim reports produced as part of a pilot initiative of six rural towns has found that many buildings have fallen into disrepair and remain vacant because there are both difficulties identifying owners and in other cases the property holder is refusing to sell.

The Department of Rural Affairs has also been told that traffic clogging up rural villages and towns, the cost of refurbishing old buildings and negative perceptions of living in these areas have hampered regeneration.

The interim results, which have not been published, come out of the pilot scheme announced in last year's Budget which asked six rural towns to develop proposals to encourage more people to live in their town centres.

Funding of €100,000 was provided to each of the relevant Local Authorities to consult with the communities of each town and to collaboratively develop ideas which could encourage increased town centre living.

Representatives from these towns have met regularly to work on the pilot and interim progress reports which were provided to the Department.

While each of the pilot towns had their own individual concerns, a number of common issues have been identified which show the complexity and multi-faceted nature of increasing the number of people who live in town centres.

These include:

The high cost of refurbishing vacant buildings especially where properties are listed as protected structures;

Difficulty in identifying property owners of abandoned homes and closed shops which could be converted;

Where the owners are known, they often refuse to sell or refurbish these properties. In some cases owners believe they will get more money for their property in the future, while some owners may want to keep buildings for sentimental reasons;

A lack of amenities in rural communities and the need for wider enhancements to town centres and provision of amenities;

A negative perception of living in rural centres. It was noted that families do not want to move into these villages or towns if they feel there will be no one else around them;

Traffic was also raised as a significant factor.

A further, more comprehensive report on the issues which identified and suggested courses of action will be produced for the Department by the end of the year.