Dáil Éireann Debate, Wednesday - 15 October 2025
197. Deputy Robert Troy asked the Minister for Housing, Local Government and Heritage whether applicants who previously owned a property that was either re-possessed or sold for a vastly reduced price as a result of the property downturn in 2008 can be considered as fresh start applicants in terms of a local authority home loans; and his views on whether this cohort of applicants deserve and need this form of assistance. [55648/25]
View answerThe Local Authority Home Loan is a Government-backed mortgage for those who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.
An exemption to the First Time Buyer eligibility criteria may be applied under the Fresh Start Principle.
The following categories of persons may be eligible to apply for the Local Authority Home Loan under the Fresh Start principle:
• Applicant(s) who previously purchased or built a dwelling, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship may be eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous property.
• Applicant(s) that previously purchased or built a residential property, but has been divested of this through insolvency or bankruptcy proceedings, may be eligible to apply. However a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings.
It should be noted that the assessment of eligibility under the Fresh Start principle can be complex as it must take into account the specific circumstances of each applicant. In relation to the scenarios cited, without complete information, my Department is not in a position to advise, although in general unless the repossession/sale was part of insolvency/proceedings it would not be considered a Fresh Start qualifying event.
The Local Authority Home Loan scheme is kept under constant review. However, there are no plans at present to expand the Fresh Start definition.
