Affordability and the chance to own a home is at the heart of the Government’s housing policy. As detailed in the Housing for All strategy, the Government has introduced a number of measures to support households and individuals wishing to purchase a home, as well as increasing the overall supply of new homes, with an ambitious target of 300,000 new homes up to 2030.
Under Pathway 1 of this strategy, “Pathways to Home Ownership and Increasing Affordability”, two new Affordable Purchase schemes have been established (the Local Authority Affordable Purchase Scheme and the First Home shared equity scheme), and an improved Local Authority Home Loan scheme. The Local Authority Affordable Purchase Scheme primarily supports first-time buyers purchasing Local Authority-delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit.
The First Home shared equity scheme, launched last July, employs a similar equity share model in order to support households unable to afford the purchase of new homes in the private market. Subject to eligibility criteria, it can provide funds up to 30% of the value of a newly constructed home (or 20% if the Help to Buy Scheme is used). The Scheme was further expanded in September to include eligible applicants who wish to self-build their new home. Overall, this scheme is intended to support up to 8,000 affordable purchases in the period out to 2026, and the State has committed funding of €200m, to be matched by the participating mortgage lenders. Full details of the First Home Scheme, including eligibility criteria and how to apply, are available on the scheme website: www.firsthomescheme.ie/
The new Local Authority Home Loan commenced on 4 January 2022 and is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used by first-time buyers for both new and second-hand properties, or for self-builds. More information on the Local Authority Home Loan is available on the website: localauthorityhomeloan.ie/
For those wishing to purchase and renovate vacant or derelict properties, the new Vacant Property Refurbishment Grant is also available nationwide and it provides for grants for refurbishment of vacant properties of up to €50,000 or €70,000 if the property is derelict. The scheme has been extended to cover houses built up to 2007, and is available for properties intended for rental as well as owner-occupied.
I also announced last year, a new Ready to Build serviced sites scheme under the Fund where Local Authorities will provide sites at a discount to people who want to build their own home. Information on both of these schemes is available directly from Local Authorities.
Furthermore, it is important to note that matters such as mortgage deposit requirements and mortgage borrowing ability come under the remit of the Central Bank of Ireland, which is an independent body. Relevant information is available at the following Central Bank link:
www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures
Lastly, specifically in relation to the income limits for Social Housing, my Department increased the baseline social housing income thresholds by €5,000 for all local authorities with effect from 1 January 2023. Further information is available at www.gov.ie/en/publication/04c69-social-housing-support-table-of-income-limits/
Decisions on the qualification of specific persons for social housing support, the most appropriate form of any such support, and the allocation of that support should be progressed through the local authority concerned.
